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PRECIOUS-Gold slips on firmer dollar, vaccine boost to economic outlook

Published 2020-11-19, 05:07 a/m
© Reuters.
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* U.S. weekly initial jobless claim data due 1330 GMT

* Dollar snaps five sessions of losses

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

* Graphic tracking world spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices)

By Asha Sistla

Nov 19 (Reuters) - Gold fell to a one-week low on Thursday as the dollar regained momentum and optimism that progress on vaccine development would hasten economic recovery eroded bullion's safe-haven appeal.

Spot gold XAU= fell 0.5% to $1,861.35 per ounce by 1311 GMT, having earlier hit its lowest since Nov. 9 at $1,854.60.

U.S. gold futures GCcv1 slipped 0.7% to $1,860.80.

Gold is the victim of optimism over a coronavirus vaccine and a strengthening dollar pushing it towards the bottom end of its range, Michael Hewson, chief market analyst at CMC Markets UK, said.

"U.S. fiscal stimulus remains an issue because (Donald) Trump hasn't yet conceded the presidential election, so fiscal support remains far away," he added.

The dollar .DXY , considered a rival safe haven, was up 0.3% versus rivals, benefiting from uncertainties over a spike in new coronavirus cases in the United States and resultant restrictions. USD/ cases in Europe too pushed world stocks further away from record peaks scaled after promising vaccine announcements from Pfizer (NYSE:PFE) and Moderna. MKTS/GLOB

The vaccines could be ready for U.S. authorisation within weeks, U.S. Health and Human Services Secretary Alex Azar said on Wednesday. the short term, (gold) prices may continue to drift lower towards $1,800," Vincent Tie, sales manager at Silver Bullion, said.

Gold has gained some 23% this year, boosted by its appeal as a hedge against inflation and currency debasement that may follow the unprecedented global stimulus.

"What hasn't changed is the prospect of near-term economic damage due to rising virus cases," said Hewson, adding that central banks might have to do the "heavy-lifting" in the short-term. awaited U.S. jobs data at 1330 GMT for evidence on the state of the economy.

Silver XAG= dipped 1.6% to $23.92 per ounce. Platinum XPT= rose 0.7% to $948.50, while palladium XPD= fell 0.5% to $2,317.50.

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