- Gold struggled to capitalize on the positive movement overnight and remained confined within a range.
- Doubts about a possible COVID-19 vaccine, certain renewals of the sale in USD have extended their support.
- The indications of a strong opening on the American stock markets have limited the gains before the minutes of the FOMC.
Gold fell slightly at the start of the North American session and refreshed daily lows around the region of $ 1743-42, although there was no solid follow-up.
A combination of divergent forces did not give significant momentum or help the precious metal to build on the positive movement overnight, rather led to moderate / limited trading action on Wednesday.
Hope for a potential vaccine to treat the deadly coronavirus faded fairly quickly after information released on Tuesday indicated that the American drug maker Moderna had not provided enough data to determine the vaccine’s effectiveness. This, combined with the emergence of new sales of US dollars on Wednesday, also benefited the dollar-denominated product.
Meanwhile, the supporting factors, to a greater extent, were canceled out by indications of a strong opening on the US stock markets. This, in turn, has undermined the perceived safe haven status of the precious metal and resulted in a modest decline in the past hour.
Apart from that, investors also seemed reluctant to place aggressive bets, preferring instead to wait on the sidelines before the publication of the minutes of the last FOMC meeting. The minutes will be scrutinized for clues to the future policy of the Fed, which will play a key role in influencing short-term direction for the unproductive yellow metal.