Gold prices are trading somewhat steady into Tuesday as optimism surrounding Moderna’s COVID-19 vaccine was balanced by concerns about the surge in fresh coronavirus infections across the US. At the time of writing, GOLD is trading at a little above $1,887.

During the past session, the yellow metal’s safe haven appeal took a beating, causing prices to fall by as much as 1.3%, after Moderna reported that its vaccine was over 94% effective in preventing COVID-19. The company had revealed these results from a late-stage trial, boosting the market sentiment over hopes that the pandemic could soon be brought under control.

According to Fed Vice Chair Richard Clarida, promising updates about vaccines by Pfizer and Moderna have increased expectations for a quick economic recovery in the US. However, cases continue to climb higher across most parts of the country, driving a corresponding increase in both hospitalizations and deaths as well, which is heightening the uncertainty in markets.

Meanwhile, policymakers across Europe also stressed on the need for more stimulus from both the ECB as well as governments to compensate for the severe downturn the Eurozone economy is currently experiencing. The current second wave of the pandemic that has forced countries to reimpose restrictions and lockdowns has also weakened the outlook for the Eurozone economy, lending a support to gold prices.