Gold is trading bullish on Tuesday even as the US dollar strengthens, reversing losses after falling to a six-week low during the previous session, as markets worry about the economic impact of the coronavirus driving the need for more stimulus measures. At the time of writing, GOLD is trading at a little above $1,837.

Gold prices weakened on Monday after the US dollar surged to the highest level seen in four weeks, on the back of rising hopes that President elect Joe Biden could unleash more stimulus to support economic recovery in the US. The yellow metal shares a negative correlation with the greenback, as a stronger dollar makes it more expensive for holders of other currencies to invest in the safe haven asset.

In addition to hopes for more stimulus in the US, the gold also enjoys support from reports about Eurozone’s finance ministers agreeing to roll out more fiscal stimulus to prop up their economies through the coronavirus crisis. Meanwhile, the IMF has also cautioned that the global economic outlook faces high levels of uncertainty and could need more resources and aid to help out countries with significant debt.

Despite the rollout of the COVID-19 vaccine across some countries around the world, fresh infections continue to rise, forcing countries to impose more lockdowns and restrictions. More lockdowns are expected to drive deeper economic damage and delay any hopes for the global economy to rebound even after the pandemic is brought under control through successful vaccinations.