2020.07.1518:49:00UTC+00Gold Futures Settle Slightly Up As Dollar Drifts Lower

Gold prices advanced on Wednesday as the dollar weakened. However, the yellow metal's gains were just modest as riskier assets such as equities rose sharply, reacting to upbeat news on the coronavirus vaccine front.

The dollar index dropped to a low of 95.78 around mid-morning, but recovered well to move past 96 subsequently. It was last seen at 96.07, down nearly 0.2% from previous close.

Gold futures for August ended up $0.40 at $1,813.80 an ounce.

Silver futures for September ended higher by $0.231 at $19.761 an ounce, while Copper futures for September settled at $2.8850 per pound, down $0.0475 from previous close.

Biotech firm Moderna said its experimental vaccine for Covid-19, mRNA-1273, showed it was safe and produced strong immune responses in all 45 patients in an ongoing early-stage human trial.

Traders were also looking ahead to the European Union leaders meeting, due later this week. During the extraordinary summit, the leaders are expected to agree on a recovery fund of 750 billion euros for pandemic-hammered economies.

Gold's downside was limited amid rising tensions between the U.S. and China and uncertainty about the pace of global economic recovery.

After U.S. President Donald Trump ordered an end to Hong Kong's special status under U.S. law, Beijing vowed retaliatory sanctions against U.S. individuals and entities. "Hong Kong affairs are purely China's internal affairs and no foreign country has the right to interfere," China's foreign ministry said.