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PRECIOUS-Gold at 1-week low as hopes rise of more rapid economic recovery

Published 2020-11-18, 11:26 p/m
© Reuters.
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* U.S. weekly initial jobless claim data due 1330 GMT

* GRAPHIC: Tracking the vaccine race https://tmsnrt.rs/3nGrJoP

* Graphic tracking world spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Recasts, adds comments, updates prices)

By Eileen Soreng

Nov 19 (Reuters) - Gold retreated to a one-week low on Thursday as encouraging developments relating to COVID-19 vaccines have raised hopes of a more rapid recovery in the global economy, even as new coronavirus cases continued to rise.

Spot gold XAU= fell 0.4% to $1,863.12 per ounce by 0759 GMT, having earlier hit its lowest since Nov.11, at $1,857.16, putting it on course for a second straight weekly decline.

U.S. gold futures GCcv1 slipped 0.6% to $1,862.30.

"Post the U.S. election, there is confidence in the global economy and gold's safe-haven appeal has been easing. Secondly, pandemic-related uncertainty is going to be decreasing because we're all hoping for the vaccine in the market soon," said Hareesh V, head of commodity research at Geojit Financial Services.

COVID-19 vaccines from Pfizer Inc (NYSE:PFE) PFE.N and Moderna Inc MRNA.O could be ready for U.S. authorisation within weeks, setting the stage for inoculation to begin as soon as this year, U.S. Health and Human Services Secretary Alex Azar said on Wednesday. weighing on gold, the dollar index .DXY was up 0.2%. USD/

Gold is still up about 23% this year, boosted by its appeal as a hedge against likely inflation and currency debasement that may follow the unprecedented stimulus measures globally.

"In the short-term, (gold) prices may continue to drift lower towards $1,800. We expect the next leg of the bull market to resume next month or January 2021," said Vincent Tie, sales manager at Silver Bullion.

Increased coronavirus-driven restrictions in the United States, where the death toll crossed 250,000, caused Asian equities to fall from record highs, while bonds were buoyed by growing bets that the U.S. Federal Reserve may fill in the gap as uncertainties persist over a fiscal relief bill. are waiting for U.S. jobs data at 1330 GMT for evidence on the state of the economy.

Silver XAG= fell 1% to $24.08 per ounce. Platinum XPT= dipped 0.6% to $936.54, while palladium XPD= eased 0.4% to $2,319.10.

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