Early on Wednesday, gold prices are recovering after posting steep losses during the previous session, as the US dollar dips in anticipation of Fed’s stimulus measures even as the market sentiment is dominated by coronavirus concerns. At the time of writing, GOLD is trading at a little above $1,585.

On Tuesday, gold had lost around 3.1% of its value as the dollar continued to make gains even as markets remained worried about the economic fallout from the raging coronavirus pandemic globally. The Fed offered greater access to the greenback for foreign central banks by permitting the exchange of US Treasury securities for overnight dollar loans, aiding to the pressure on the US dollar and helping gold edge higher.

Gold prices also received a boost after equity markets slid lower during the Asian session over fears about a global economic recession because of the pandemic. The safe haven metal was also supported after latest data revealed that consumer confidence in the US fell close to a three-year low during March.

With more economic data releases slated for release later today, the focus will remain on the economic impact of coronavirus, which is likely to keep gold in favor among traders. Meanwhile, the Fed and China have signaled the possibility of unveiling more stimulus to offset economic damage the virus is likely to cause.