Gold eased from four-month highs on Monday as investors cashed in some of last week’s hefty gains, though prices were still supported by wider market volatility that boosted the metal’s appeal as a haven from risk.
A market rout after Switzerland unexpectedly abandoned a cap on the franc last week triggered strong bids for gold, often seen as an alternative to risky assets, sending prices to their highest since September at $1,281.50.
While it edged back from that level on Monday, traders said that gold remained supported as the market braced for further volatility in a critical week for the euro zone.
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