The pound has lost over 1% against the dollar this week, as the EU, which is lagging Britain and the United States in rolling out vaccines, considers the measure.
U.S. benchmark Treasury yields continued their dip, translating into lower opportunity cost of holding bullion, after scaling one-year highs last week.
"A significant delay to Europe's re-opening efforts will only widen the divergence between the economic outlook in Europe and the US," putting additional pressure on the euro, she said.
The Bank of Canada is seeing evidence of investor activity in some Canadian housing markets and is concerned that "fear of missing out" may also be driving price gains, Deputy Governor Toni Gravelle told Reuters on Tuesday.