The U.S. dollar advanced across the board on Wednesday, shaking off the weakness of the previous session, as it continued its recent rebound from last week's near three-year low.
U.S. stock futures built on Tuesday's rally as investors grew more optimistic about Washington reaching a deal on another coronavirus economic relief package.
Gold prices recovered from five-month lows on Tuesday as worries over spiking Covid-19 cases offset optimism around vaccine developments and nudged investors towards the precious metal.
An under pressure U.S. dollar handed back part of its month-end bounce on Tuesday, as investors reckoned on more monetary easing by the Federal Reserve and a gathering recovery elsewhere.
The dollar fell on Tuesday to its lowest in more than 2-1/2 years, as investor appetite for risk increased on the prospects of further fiscal stimulus from the United States as well as expectations of a solid global recovery.
Gold jumped more than 2% on Tuesday, rebounding from a five-month low in the last session, and silver soared over 6%, as the dollar slid, with U.S. stimulus bets adding to bullion's appeal as an inflation hedge.