Early on Tuesday, gold prices have slipped by more than 1% on account of profit taking by investors after the yellow metal soared to a seven year high in the previous session. At the time of writing, GOLD is trading at a little above $1,657.

However, markets remain confident that gold prices will continue to climb higher over the reigning risk-off sentiment in global markets as a result of the coronavirus outbreak. Stock markets around the world have experienced sell-offs over worries that the outbreak could turn into a global pandemic and disrupt supply chains of multinational companies as a result.

There also rising expectations of additional rate cuts by leading central banks including the Fed and the the ECB. Gold prices remain supported over the rising likelihood of lower interest rates which could weigh on the US dollar and send the yellow metal higher.

On Monday, a White House spokesman confirmed the US government is likely to ask lawmakers to release additional funds for emergency measures to combat the possible fallout of the spread of the coronavirus. Meanwhile, Cleveland Fed President expressed confidence that the US economy could continue to grow despite the risk from the virus as a result of a supportive monetary policy.