On Tuesday, gold prices are retreating lower as a result of a strong US dollar even as the risk sentiment in global markets received a boost over emerging hopes about coronavirus treatment options. At the time of writing, GOLD is trading at a little above $1,935.

Gold remains under pressure as the dollar trades close to the highest levels in over a week, making the yellow metal more expensive for holders of other currencies. In addition, the safe haven appeal of the metal was dented as stock markets rallied over expectations for a possible vaccine to combat the ongoing pandemic.

Later this week, gold could see some movement after Fed chair Jerome Powell’s speech at the annual Jackson Hole symposium. Powell is expected to shed light on the direction of the monetary policy for the US and could even confirm any changes to its approach towards the country’s inflation.

The possibility of receding trade tensions between the US and China exert further downward pressure on gold prices after senior officials held discussions on the phase one trade deal on Monday. Both sides confirmed that the talks made progress and that they are interested in honoring the terms of the partial trade deal which was signed earlier this year.