* Virus surge prompts restrictions in Europe, U.S.
* Global equities at record high, dollar subdued
* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices)
By Asha Sistla
Nov 17 (Reuters) - Gold inched lower on Tuesday as optimism over an effective COVID-19 vaccine offset concerns facing its eventual rollout, a subdued dollar and bets for further monetary support as infections surged in Europe and the United States.
Spot gold XAU= fell 0.1% to $1,887.40 per ounce by 1156 GMT, but held in a tight $9 range. U.S. gold futures GCv1 eased 0.1% to $1,886.20.
"Gold is mirroring the reaction of really everybody watching the evolution of the vaccines," and the positive news is clearly keeping a cap on the gold market, said Robin Bhar, an independent analyst.
"But it's still a long way to go" and long term factors, including likely inflation down the road, continue to be supportive for gold, Bhar added.
Also stemming bullion's downside, the dollar index .DXY was down 0.3%. USD/ US/
Gold shed as much as 1.3% on Monday after Moderna MRNA.O said its vaccine was 94.5% effective in preventing COVID-19 in a late-stage trial, becoming the second U.S. drugmaker after Pfizer (NYSE:PFE) PFE.N to report results exceeding expectations. vaccine news continued to buoy risk sentiment, although the rally stalled in European shares as focus turned to increasing coronavirus-led restrictions in Europe. .EU MKTS/GLOB
Gold, considered a hedge against inflation and currency debasement, has gained over 24% this year, mainly benefiting from global stimulus and near-zero interest rates to cushion the effect of the pandemic. Federal Reserve Vice Chair Richard Clarida on Monday acknowledged the new vaccine as a positive for economic recovery and said that the Fed would apply an expansive view of the labour market before deciding on any rate hikes. XAG= fell 0.6% to $24.60 per ounce. Platinum XPT= slipped 0.2% to $923.45, while palladium XPD= shed 0.4% to $2,322.75.
"Strong car sales in China, a likely vaccine and recovering economic activity should keep the palladium market tight once again in 2021, lifting prices to $2,600/oz," UBS analysts said in a note.