Gold prices extended losses for a third consecutive session on Tuesday as equities resumed rebound after falling to a records low last week.
The precious metal hit a bottom of $1190.76 an ounce, while currently trading around $1205.40 from the opening at $1207.90.
Still, the key factor supporting demand on gold is the fears, when the worries ease investors return to equities at the expense of bullion.
The Shanghai Composite Index climbed 3.29 percent to lead gains in Asia, while European shares opened higher.
The sentiment has improved since Friday after the release of upbeat U.S. retail sales that showed consumer spending regained its strength in January.
The rebound on oil prices also added more positivity, where Crude oil resumed its rise for a third straight session on Tuesday trading around $30.95 a barrel as Saudi Arabian and Russian energy ministers are set to meet in Qatar later in the day to discuss output.
Data from China released today signaled that lenders created new loans worth 2.51 trillion yuan in January from 597.8 billion yuan in December.
The dollar retreated, snapping its two-day rally, to hover around 96.40, according to the dollar index.
Tomorrow, investors will focus on housing, inflation and industrial production data from the U.S., in addition to Fed minutes for the latest policy meeting.
“We are recommending shorting gold” since “fears around China, oil and negative interest rates have likely been overstated in the gold price and other financial markets,” Goldman Sachs said on Monday.
