<p>Gold prices firmed on Tuesday after falling as much as 5.2% in the previous session, as hopes of more US stimulus measures to cushion the Covid-19 pandemic hit bolstered the precious metal's appeal as an inflation hedge.</p>.<p>Spot gold climbed 1% to $1,880.41 per ounce by 0352 GMT It fell to $1,849.93, its lowest level since Sept. 28, on Monday after US drugmaker Pfizer Inc said its experimental Covid-19 vaccine was more than 90% effective, based on initial trial results.</p>.<p>US gold futures were up 1.3% at $1,878.90. Central banks are unlikely to change their accommodative stance in the near to medium term as it will take time for a vaccine deployment and the subsequent pick-up in growth, inflation and labour market, said Lachlan Shaw, head of commodity research at National Australia Bank.</p>.<p>"If inflation expectations pick-up as a result of increased economic activity from the vaccine, that should keep a lid on long US real yields and be a supporting driver for gold."</p>.<p>While optimism over coronavirus vaccine development boosted risk appetite, uncertainties continued to loom over the impact of surging Covid-19 cases in the United States and Europe.</p>.<p>"I still think we've got more stimulus coming and the Fed will keep rates low, while a vaccine is going to provide that reflationary impulse... That's why the markets are still holding onto gold," said Stephen Innes, chief global market strategist at financial services firm Axi.</p>.<p>Dallas Federal Reserve Bank President Robert Kaplan said on Monday the resurgence of Covid-19 poses downside risks to the US economy, while Cleveland Fed President Loretta Mester said the central bank's emergency lending programs are still needed.</p>.<p>Silver rose 0.5% to $24.19 per ounce.</p>.<p>Platinum gained 0.4% to $869.61 and palladium was 0.6% higher at $2,492.32.</p>
<p>Gold prices firmed on Tuesday after falling as much as 5.2% in the previous session, as hopes of more US stimulus measures to cushion the Covid-19 pandemic hit bolstered the precious metal's appeal as an inflation hedge.</p>.<p>Spot gold climbed 1% to $1,880.41 per ounce by 0352 GMT It fell to $1,849.93, its lowest level since Sept. 28, on Monday after US drugmaker Pfizer Inc said its experimental Covid-19 vaccine was more than 90% effective, based on initial trial results.</p>.<p>US gold futures were up 1.3% at $1,878.90. Central banks are unlikely to change their accommodative stance in the near to medium term as it will take time for a vaccine deployment and the subsequent pick-up in growth, inflation and labour market, said Lachlan Shaw, head of commodity research at National Australia Bank.</p>.<p>"If inflation expectations pick-up as a result of increased economic activity from the vaccine, that should keep a lid on long US real yields and be a supporting driver for gold."</p>.<p>While optimism over coronavirus vaccine development boosted risk appetite, uncertainties continued to loom over the impact of surging Covid-19 cases in the United States and Europe.</p>.<p>"I still think we've got more stimulus coming and the Fed will keep rates low, while a vaccine is going to provide that reflationary impulse... That's why the markets are still holding onto gold," said Stephen Innes, chief global market strategist at financial services firm Axi.</p>.<p>Dallas Federal Reserve Bank President Robert Kaplan said on Monday the resurgence of Covid-19 poses downside risks to the US economy, while Cleveland Fed President Loretta Mester said the central bank's emergency lending programs are still needed.</p>.<p>Silver rose 0.5% to $24.19 per ounce.</p>.<p>Platinum gained 0.4% to $869.61 and palladium was 0.6% higher at $2,492.32.</p>