The start of trading earlier in the week showed the yellow metal traded slightly up following the depreciation of the US dollar.
Spot gold rose 0.2% at $ 1,954 per ounce, while gold futures traded at $ 1,960 per ounce (3.20pm Malaysian time).
The threat of a second wave of Covid-19 is again plaguing sentiment as a sharp increase in cases in Europe raises market concerns, especially in Britain.
Most recently, one government medical adviser warned that the UK was currently at a critical level, further increasing the likelihood that the country would face a second nationwide ban.
Meanwhile, the dollar index, which measures the strength of the greenback dollar against a basket of major currencies, traded lower at 92.85.
Investors are cautiously avoiding earning US dollars after data from Johns Hopkins University on Sunday showed that new cases of Covid-19 have increased by at least 10% in 31 states in the United States.
Meanwhile, investors are now waiting for a speech by Federal Reserve (Fed) policymakers this week to get more clues on the US central bank's approach to inflation.
Gold has recorded a 29% increase this year as governments and central banks around the world take massive easing measures to support the economy from the impact of the coronavirus pandemic.
