Gold is trading bearish at the beginning of a brand new trading week as markets cheer the development and rollout of vaccines against COVID-19 around the world, weakening the safe haven appeal of the yellow metal. At the time of writing, GOLD is trading at a little above $1,834.

Despite the possibility of the US rolling out more fiscal stimulus measures, gold prices are weakening as traders focus on how the vaccine rollout could aid economic recovery around the world. Traders anticipate that the optimism surrounding the vaccine and possible economic recovery could also reduce the scope of the stimulus measures needed or being finalized by the US government, which is also exerting downward pressure on the safe haven asset.

The US has granted emergency authorization for the rollout of Pfizer/BioNTech’s COVID-19 vaccine, and the rollout is expected across the world’s biggest economy could begin as soon as this week. Expectations for economic recovery are sending investors away from the safety of the precious metal and towards trading riskier instruments instead.

Later this week, gold could experience some movement on the back of the FOMC meeting that starts on Tuesday. Markets are expecting the US central bank to announce measures to control the rising bond yields through more purchases of longer-dated Treasuries.