Gold started trading earlier this week in a daze as the market welcomed the news of the Covid-19 vaccine which will start distributing today, prompting investors to relinquish their holdings on the safe-haven asset.
Entering the European session, gold traded down 0.3% at $ 1,832 per ounce, while gold futures declined at $ 1,835 per ounce.
Although the market is now also backed by optimism over the US coronavirus stimulus package, this precious metal failed to take advantage of the opportunity to rise due to confidence in the global recovery following positive news about the vaccine.
The United States is expected to begin its vaccination campaign as early as today, hoping that coronavirus restrictions in some areas will end sooner and a faster global recovery.
Nevertheless, confidence in US stimulus measures still supports gold commodity trading from falling lower.
The FOMC policy meeting on Thursday, will be the focus of the market this week where the Federal Reserve (Fed) is expected to keep interest rates at a low of 0.25%.
