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PRECIOUS-Gold slips on Pfizer boost to risk appetite

Published 2020-11-18, 05:42 a/m
© Reuters.
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* Pfizer to apply for emergency U.S. authorization for vaccine

* Platinum market seen in deficit this year and next - WPIC

* Fed's Powell says "long way to go" for economy to recover

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa /root

(Adds analyst comments, updates prices)

By Asha Sistla

Nov 18 (Reuters) - Gold slipped on Wednesday on more positive developments on Pfizer's race for a COVID-19 vaccine, accelerating a move into riskier assets again.

Spot gold XAU= was down 0.3% to $1,872.71 per ounce by 1321 GMT, while U.S. gold futures GCv1 fell 0.7% to $1,872.10.

U.S. drugmaker Pfizer Inc (NYSE:PFE) PFE.N said on Wednesday that it was set to apply for emergency U.S. authorization after final results from its vaccine trial showed a 95% success rate with two months of safety data. latest good news from the vaccine front that came out helps to support risk assets and this weighed on safe haven assets like gold," said Fawad Razaqzada, market analyst with ThinkMarkets.

"As investors look forward to a normal future, expectations that monetary policy will be loosened further will fall," thereby reducing flows into safe-havens.

Equities rose on the latest update from Pfizer, which overshadowed concerns over rising coronavirus cases globally. .EU US/ shed more than 1% on Monday after Moderna MRNA.O became the second U.S. drugmaker to announce late-stage successful vaccine trials. dollar index .DXY fell 0.1%, making gold cheaper for those holding other currencies. USD/

But looking ahead, an expansion in the U.S. Federal Reserve's quantitative easing programme in December may weaken the dollar and prove a tailwind for bullion, said Lukman Otunuga, senior research analyst at FXTM.

Fed chair Jerome Powell said on Tuesday the central bank was committed to using all its tools to drive an economic recovery. considered a hedge against inflation and currency debasement, has gained 23% this year, benefiting from massive global stimulus.

Silver XAG= fell 0.3% to $24.39 per ounce, palladium XPD= gained 0.8% to $2,336.45.

Platinum XPT= was up 0.2% to $927.05.

The World Platinum Investment Council projected a market deficit in 2020 and 2021.

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