After gaining gains at the 3-week high, unfortunately the yellow metal trade plummeted to a low of $ 1,900 per ounce following the strengthening of the US dollar.
During the Asian session, the precious metal traded around $ 1,892 per ounce, after falling 1.7% in the previous session. Gold futures traded at $ 1,987 per ounce.
The yellow metal, which had recorded an increase for two consecutive weeks, continued to bear losses for the third day of the week following a rise in the US dollar which had stifled buying interest for gold.
Disappointing news from Covid-19 vaccine expansion efforts and US fiscal stimulus package negotiations that are still at a dead end have prompted investors to switch to the US dollar safe-haven.
Hopes for a US stimulus package deal are fading after House Speaker Nancy Pelosi rejected the White House proposal for $ 1.8 trillion in aid, saying it was far less than the economy needed.
Meanwhile, global financial leaders on Tuesday said the global economic downturn caused by the coronavirus was better than previously feared.
The US economy is expected to decline by 4.3% by 2020, much lower than the initial estimate of 8% in June.
