Early on Wednesday, gold prices are strengthening amid the prevailing risk-off sentiment in markets over rising fears about a second wave of coronavirus cases across some countries, especially China and South Korea. At the time of writing, GOLD is trading at a little above $1,702.

The market sentiment deteriorated and sent equities lower even as health experts warned about reopening the US economy too soon and facing a possible resurgence in the number of infections. This boosted the safe haven appeal of gold and sent prices higher.

Gold has also benefited from a weakness in the US dollar ahead of Fed chairman Jerome Powell’s speech later during the day. Markets are eager to hear Powell’s comments on the possibility of the US central bank pushing rates into negative territory amid the escalating coronavirus crisis.

Expectations for more stimulus measures in the US are also supporting the yellow metal’s bullishness lately. With several Fed officials signalling that the US economy could take longer to recover, economists are calling for more stimulus programs to help pull the economy out of the impending recession.