Gold Subdued As Equities Edge Higher Gold prices were flat to slightly lower on Wednesday and equities edged higher as traders cheered positive updates on a potential Covid-19 vaccine and pinned hopes on EU stimulus.

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.

EU leaders are set to meet later this week for an extraordinary summit and it is expected that they will agree on a recovery fund of 750 billion euros for pandemic-hammered economies.

Both spot gold and U.S. gold futures were down 0.1 percent at $1,811.85 per ounce and $1,811.95, respectively. Diplomatic tensions between the United States and China as well as concerns over the recovery of the global economy helped limit the downside for the yellow metal.

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.

U.S. Federal Reserve officials warned that the U.S. economy will recover more slowly than expected, as cases continue to surge across the country leading many states to impose restrictions on movement and stay-at-home advisories.