Early on Wednesday, gold prices are back to trading bullish after the US dollar weakened over rising worries about the impact of the coronavirus on the US economy and the global economy. At the time of writing, GOLD is trading at a little above $1,658.

Although markets increased expectations for more economies to roll out stimulus measures to support growth, there is a sense of skepticism on how effective such initiatives would be when the real extent of potential damage cannot be calculated. This is driving a risk-off sentiment in global markets and supporting the safe haven appeal of gold.

As the number of coronavirus cases continue to rise around the world, equities trade under pressure, continuing to fall lower and sending investors scurrying for the safety of instruments like gold and Japanese yen. Despite Trump proposing possible stimulus efforts, the US dollar weakened, sending the yellow metal prices higher as a result.

In addition to the US, Japan also announced a package of around $4 billion worth of spending to stave off the risks of a recession in its economy. Meanwhile, the UK could also mention similar measures when it unveils its budget later today and the ECB could announce some support at its meeting later this week.