Gold prices are trading steady early on Wednesday amid the prevailing risk-off sentiment in global financial markets, even as the US dollar holds strong. At the time of writing, GOLD is trading at a little above $1,682.

In the previous session, gold lost around 2% of its value amid a sudden rush for liquidity among traders following the crash in crude oil prices. For now, gold is experiencing some pressure after the moves strengthened the US dollar, which shares a negative correlation with the yellow metal.

However, gold prices remain supported over the decline in equity markets as investors feared the impact of the falling crude oil prices and the economic fallout from the raging pandemic worldwide. Amid rising worries about a deep economic recession globally, investors are worried about commodity prices crashing in the near future.

Gold also enjoyed some support after the US Senate approved an additional $500 billion worth of aid for hospitals and the economy in the wake of the escalating coronavirus crisis across the country. The US remains the worst affected in terms of the number of cases, even as citizens break out on protests against the extended shutdowns in the country.