Gold pulls back from one-week high on profit-taking

Gold prices fell on Tuesday, giving up the 1-week high that was hit yesterday on profit-taking, but today's loss is still limited as the US dollar continues to fall against its peers.

Gold fell 0.25% to $1,884.23, after opening at $1,888.76, and hit an intraday low at $1,892.48.

The yellow metal closed flat yesterday, after jumping earlier in the session to a 1-week high of $1,899.05 an ounce.

Alongside profit-taking, gold prices are currently being weighed down by weak safe-haven demand amid strong market sentiment, after the release of positive news about coronavirus vaccines.

The US dollar index fell 0.3% today, deepening its losses for the fourth straight day, and hit a 1-week low of 92.37 points, which lifts the prices of dollar-denominated metals.

The greenback fell due to improved risk appetite, as hopes increased about a smooth transition of power in the US, and successive positive news about Covid-19 vaccine candidates.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since July 24 at 1,234.32 metric tonnes.