2020.05.1910:37:00UTC+00Gold Inches Higher In Lackluster Trade

Gold prices were moving higher on Tuesday despite news on a potential coronavirus vaccine helping lift demand for riskier assets.

Both Spot gold and U.S. gold futures were up about 0.2 percent at $1,735.82 per ounce and $1,738.05, respectively.

U.S.-China tensions over the coronavirus pandemic rose further, with Chinese foreign ministry spokesman Zhao Lijian saying the U.S. was trying to smear China and had miscalculated by trying to use China to avoid its own responsibility.

U.S. President Donald Trump on Monday threatened to permanently freeze funding to the World Health Organization if it didn't commit to improvements within 30 days.

Meanwhile, media reports suggest that U.S. lawmakers and officials are crafting proposals to push American companies to move operations or key suppliers out of China that include tax breaks, new rules, and carefully structured subsidies.

Investors look forward to testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin later day for a fresh directional impetus.