Gold is trading mostly unchanged on Friday as the optimism around Pfizer’s vaccine has been offset by rising fears about the spike in fresh coronavirus cases across the world and its possible economic impact. At the time of writing, GOLD is trading at a little above $1,877.

So far this week, gold prices have weakened by 3.8% as its safe haven appeal took a beating when the market sentiment soared on the news about the COVID-19 vaccine by Pfizer. Hopes of the vaccine that is more than 90% effective had traders expecting an end to the pandemic soon, sending them towards riskier instruments.

Gold, which shares a negative correlation with the US dollar, also experienced some downward pressure from the strengthening in the reserve currency. The greenback has gained around 0.7% of its value so far this week, keeping the yellow metal prices in check.

However, gold enjoys support from the continued spike in fresh infections and hospitalizations across several parts of the world. Markets are concerned that the recent resurgence could force authorities to impose more lockdowns and restrictions, which could hurt the global economy further even before it has had a chance to recover from the effects of the pandemic so far.