Gold slips as new vaccine bolsters investor sentiment

Gold prices fell earlier in Asia on Tuesday even after a drop in the Dollar made the yellow metal slightly cheaper for investors with positions in other currencies.

Gold futures slid by 0.06% to $1,734.45 per ounce at 12:38 AM ET (5:38 AM GMT). Investors retreated from gold after U.S.-based biotech firm Novavax revealed a potential COVID-19 vaccine.

Novavax said that it hopes to have results from the first phase of its clinical trials for the vaccine by July. Depending on the results, phase 2 trials will commence in several countries.

Investor sentiment was also boosted after Japan lifted the state of emergency in the remaining 5 of its prefectures, including its capital Tokyo.    

Stocks, which usually move in the opposite direction to gold, gained on Tuesday morning.

Meanwhile, investors are looking into U.S. Fed Chairman Jerome Powell’s remarks on Friday during a virtual discussion in hopes to find hints on additional stimulus measures as well as the probability of negative interest rates.