Gold sits near 3-week tops, around $1585 region amid risk-off mood

• Worries over the outbreak of coronavirus boosted gold's perceived safe-haven status.
• The ongoing slump in the US bond yields provided an additional boost to the metal.
• A subdued USD demand does little to influence or provide any meaningful impetus.

Gold held on to its strong bid tone through the mid-European session and is currently placed near three-week tops, around the $1585 region.

Concerns over the outbreak of the deadly coronavirus boosted demand for traditional safe-haven and assisted the precious metal to build on the previous session's bullish break through over two-week-old trading range.

Reviving safe-haven demand remain supportive

With more than 2,700 people infected and 80 dead, growing market concerns that authorities might be struggling to contain the outbreak of the virus triggered a fresh wave of the risk aversion trade on Monday.

The global flight to safety was evident from a selloff across equity markets and reinforced by a slump in the US Treasury bond yields, which further played their part in driving flows towards the non-yielding yellow metal.

Meanwhile, a subdued US dollar demand, albeit the downside remained limited, did little to influence or provide any meaningful impetus to the dollar-denominated commodity on the first day of a new trading week.

In the absence of any major market-moving economic releases from the US, investors will continue to pay close attention to headlines regarding the spreading of the coronavirus to grab some short-term opportunities.

Technical levels to watch