It is seen that the short-term direction in Gold is at $ 1889.70 and $ 1842.60. Gold futures surged on Tuesday, but gains were likely limited by a slightly stronger US Dollar and steadily rising US Treasury yields.
Generally soft demand for high-risk assets also supported gold prices after yesterday’s sharp decline. Some traders said that concerns about the pace of the global economic recovery and the prospect of more fiscal and monetary stimulus support the dollar-denominated asset.
Comex gold futures for December are trading at $ 1875.30, an increase of $ 20.90.
Gold dropped 4.6% on Monday after US drug maker Pfizer Inc announced that its COVID-19 vaccine was more than 90% effective, according to initial trial results, and US stocks hit a record high.
However, stocks softened on Tuesday as concerns about the extent of the economic impact of the COVID-19 pandemic resurfaced. This helped support gold prices. Moreover, gold buyers expect more compromise from central banks and additional financial incentives from governments.