Early on Wednesday, gold is trading somewhat weak close to the lowest levels seen in a week after plans for the next round of fiscal support for the US economy were delayed by President Donald Trump. At the time of writing, GOLD is trading at a little above $1,882.

Gold prices slid lower as the news supported the US dollar and helped it gain strength against its major peers. The yellow metal shares a negative correlation with the dollar, as a stronger dollar makes it more expensive for holders of other currencies to purchase the safe haven asset.

Gold has also weakened as its demand among consumers has declined due the ongoing pandemic and the ensuing economic downturn. In India – one of the largest consumers of physical gold, imports fell 59% YoY in September, on account of the steep increase in prices over the past few months.

However, the precious metal remains supported by a continued increase in the number of coronavirus cases across the US and most parts of the world. Six US states saw the number of hospitalizations due to the virus soar to record highs, forcing them reimpose restrictions once again.