Gold prices up as slowing COVID-19 cases improves market sentiment

Gold prices extended gains in Asia on Tuesday after new reports of declining COVID-19 cases improved investor sentiment. This development also led many to anticipate additional global measures to put a floor under a virus-hit economy.

Gold Futures gained 1.43% at $1,717.9 per ounce at 9:24 PM ET (2:24 AM GMT) following a 3% surge made in the previous session.

While officials warned that it was still too early to tell if the current improvements were sustainable, market sentiment recovered when the U.S., Italy, and Spain reported a slowing number of COVID-19 fatalities.

Stock markets, which were often observed to move in the opposite direction of the yellow metal, also continued an upward trend in Asia.