Gold prices have edged lower as the US dollar strengthens early on Wednesday, falling from a one-month high reached during the previous session. At the time of writing, GOLD is trading at a little above $1,648.

The safe haven appeal of gold diminished amid rising hopes for signs of leveling off in the number of coronavirus cases around the world, especially in the worst affected regions like Italy and Spain. Meanwhile, markets are also looking forward to China reopening Wuhan for the first time after the lockdown due to the outbreak today.

Conditions also appear to be improving in New York, the epicenter of the pandemic in the US, after the number of hospitalizations stopped rising. However, New York recorded the steepest rise in deaths in a single day on Tuesday after 731 people were confirmed dead due to the virus.

Gold prices have weakened after the US dollar gained around 0.2% in early trading on Wednesday. As we know, gold shares a negative correlation with the dollar as a stronger dollar makes it more expensive for holders of other currencies to purchase the yellow metal.