Gold loses gains amid mounting fears over second COVID-19 cases

Gold prices fell on early Tuesday in Asia, losing gains from the previous session amid mounting fears of a second COVID-19 wave.

Gold futures lost 0.7% to $1,705.65 per ounce at 12:05 AM ET (5:05 AM: GMT).

China and South Korea have been moving quickly to contain a second outbreak that had spread over the weekend. Chinese health authorities had called for vigilance on Tuesday in order to prevent an increase in new cases. Meanwhile, South Korea saw an additional 26 new cases on the same day.

Investors are anticipating Federal Reserve Chairman Jerome Powell’s speech scheduled later in the day. Many have speculated that the U.S. might implement negative interest rates.

Others have also speculated that Powell might announce more stimulus measures which would bolster gold because of its use as a hedge against inflation and currency debasement.   

The Dollar rose in anticipation of Powell’s speech.