Early on Thursday, gold prices are trading bullish as fears about a second wave of the pandemic support the safe haven appeal of the precious metal as countries continue to report a spike in the number of cases, which could potentially detail economic recovery. At the time of writing, GOLD is trading at a little above $1,763.

During the previous session, gold soared to an eight-year high above $1,779 before settling lower as traders indulged in profit taking. Cases continued to climb to record highs across the US states of Florida, Oklahoma and South Carolina even as New York, New Jersey and Connecticut imposed 14-day quarantine on travelers entering from nine other states.

Gold prices are also trading stronger after the IMF revised its global economic forecasts for the year lower, stating that the coronavirus pandemic could have a more severe impact than previously expected. Hopes for additional stimulus measures in the wake of the ongoing crisis are also exerting upward pressure on gold for now.

The risk-off sentiment has also sent global equities lower, further supporting the rise in gold prices. Investor confidence has once again taken a beating over the revised outlook for the global economy due to the coronavirus pandemic.