On Wednesday, gold is trading somewhat bearish, with prices falling as traders focus on the optimism surrounding the development and rollout of effective vaccines against COVID-19 and how it can drive economic recovery. At the time of writing, GOLD is trading at a little above $1,860.

While Britain has officially started the rollout of the vaccine, Pfizer’s vaccine is one step closer to being granted emergency approval for use across the US. Markets also cheered reports about Johnson & Johnson getting results for its vaccine’s late-stage trials sooner than previously anticipated.

Despite the rising vaccine optimism supporting the risk-on sentiment in markets and weakening its safe haven appeal, gold prices received some support over developments in the US related to the next round of fiscal stimulus measures. On Tuesday, the Trump administration proposed a new package worth $916 billion, which bipartisan leaders have hailed as progress.

The prospect of a new round of stimulus measures in the form of the coronavirus relief package is supporting gold prices. Announcement of stimulus measures to support the US economy drives weakness in the dollar and could send the yellow metal prices even higher in the coming sessions.