Early on Monday, gold prices are strengthening as the safe haven appeal receives a boost amid fears about the economic impact of the recent spike in coronavirus cases across the US and several parts of the world. At the time of writing, GOLD is trading at a little above $1,891.

The total number of cases in the US crossed the 11 million mark on Sunday, raising concerns about economic recovery in the US coming to a halt and turning back around towards a downturn. Consumer sentiment across the US posted a decline during November with households turning increasingly worried about their finances, lack of additional fiscal stimulus and the resurgence in cases, further supporting the gain in gold prices.

In addition, the yellow metal prices received a boost from the weakness in the US dollar. The dollar, which shares a negative correlation with gold, dipped in early trading, making the precious metal more attractive for holders of other currencies to purchase.

Prices also made gains as demand for the metal improved among Indian consumers during the festive season. India is the world’s second biggest consumer of physical gold, and despite the economic hardships caused by the pandemic, shopping for the metal surged over the past week, helping support the bullion’s prices.