By Adam Claringbull
Investing.com – Gold was down on Tuesday morning in Asia, boosted by rising concern over the number of COVID-19 cases globally offsetting optimism over the latest vaccine development. A weaker dollar also gave the yellow metal a minor boost.
Gold futures inched down 0.07% at $1,886.45 by 12:33 AM ET (4:33 AM GMT). The dollar was down on Tuesday morning.
Though recent appetite for risk has been high, continuing uncertainties brought on by the global COVID-19 pandemic and the unprecedented management of the U.S. presidential transition have maintained prices of the safe-haven asset.
Gold rapidly recovered from an overnight price slump, as investors clarified the likely timelines before a publicly available vaccination program was in place, pushing prices back to near parity with those on Tuesday.
Moderna (NASDAQ:MRNA) Inc released details of a 94.5% efficacy rating for its vaccine candidate, but there is still a long way to go before delivery can be expected. Successful tests of candidates from both Moderna and Pfizer Inc (NYSE:PFE) have increased the chance of a faster than expected U.S. economic recovery, Federal Reserve Vice Chairman Richard Clarida said on Monday.
Expectations of a large U.S. COVID-19 stimulus package are currently on hold due to the highly unusual refusal of President Donald Trump’s administration to allow President-elect Biden to access to briefings and government facilities. This has led to some investors becoming more cautious about when a relief package may be delivered.
In Europe, the coronavirus pandemic is showing no signs of slowing, with case numbers ramping up across the region. Governments are putting in place greater public health restrictions, thus further delaying any promise of economic recovery.
The U.S., too, is seeing a rapid rise in COVID-19 cases, with a number of states, including California, beginning to put in place various measures in an attempt to restrict the spread of the virus.