Gold is trading mostly unchanged early on Wednesday as a stronger dollar offset the safe haven demand in the wake of worsening risk sentiment due to the coronavirus pandemic. At the time of writing GOLD is trading at a little above $1,929.
Equity markets in the US fell lower during the previous session, giving gold a boost. However, gains in the yellow metal remain limited as the sentiment strengthened the US dollar as well.
Gold is also trading cautious in anticipation of the ECB policy decision due later today. While economists have forecast no change in the monetary policy, the central bank could potentially announce measures to stern the Euro’s recent strengthening against the dollar, which could support the precious metal prices.
The safe haven appeal of gold also enjoys support from Brexit-related uncertainties which have resurfaced after Britain hinted at the possibility of no-deal Brexit scenario once again. The British government is all set to publish a new legislation that could override the Withdrawal Agreement and even break international law to some extent, raising tensions between the EU and Britain in the midst of their negotiations towards a trade deal.