SINGAPORE: Gold inched up and moved in a narrow range in Asian trade on Wednesday, as investors weighed the prospects of a Covid-19 vaccine against concerns over rising cases and the possibility of further economic support from the US Federal Reserve.

Spot gold rose 0.1% to $1,880.81 per ounce by 0707 GMT, while US gold futures were down 0.4% at $1,878.30.

Gold shed as much as 1.3% on Monday after Moderna said its vaccine was 94.5% effective in a late-stage trial.

“There’s a lack of catalyst for gold to rally ... Weighing on prices is a slight depression in inflation expectations because it’s quite clear now that the US fiscal stimulus will probably not be as sizeable as previously imagined,” said IG Markets analyst Kyle Rodda.

“Gold has clearly run out of upward momentum, with the short-term market clearly long,” said Jeffrey Halley, senior market analyst at OANDA, adding, a daily close below key support around the $1,867 level could signal a deeper correction.

“I expect monetary policy globally, and especially from the Fed to be ultra-easy right through 2021.”—Reuters