for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

PRECIOUS-Gold dips as AstraZeneca adds to vaccine optimism

 (Adds analyst comment, updates prices)
    * AstraZeneca says COVID-19 vaccine can be 90% effective
    * Equities rally, dollar dips to near three-month low 
    * Interactive graphic tracking global spread of coronavirus:
open 
    * tmsnrt.rs/3aIRuz7 in an external browser

    By Asha Sistla
    Nov 23 (Reuters) - Gold prices eased on Monday as drugmaker
AstraZeneca         injected fresh optimism into the race for a
COVID-19 vaccine, bolstering appetite for riskier assets and
overshadowing support for bullion from a weaker dollar. 
    Spot gold        had fallen 0.4% to $1,863.21 per ounce by
1328 GMT and U.S. gold futures        were 0.6% lower at
$1,861.40.
    Britain's AstraZeneca said its vaccine could be around 90%
effective and will have as many as 200 million doses by the end
of 2020.                          
    "The fact that we have three vaccine results that are
extremely positive is keeping gold under pressure in the near
term and also stopping it from any kind of significant rebound,"
said OANDA analyst Craig Erlam.
    The positive vaccine developments prompted investors to bet
on a quicker global economic recovery, driving equities higher.
     
    But bullion's losses were capped by a weaker U.S. dollar,
which slipped to a near three-month low, making gold an
attractive bet for those holding other currencies.         
    "The expectation now is that there's an extremely strong
chance that the ECB and Fed announce more stimulus measures in
December in order to support these markets at a time when the
COVID spread is getting quite severe and we're seeing lockdown
restrictions," OANDA's Erlam said. 
    Non-yielding gold is often seen as a hedge against inflation
that is likely to result from the unprecedented stimulus
measures adopted globally this year.
    "The only short-term potential trigger for a move higher (in
gold) might be the announcement of a new Treasury Secretary by
U.S. President-elect Joe Biden and restart of discussions about
a second U.S. stimulus package," said Stephen Innes, chief
global market strategist at financial services firm Axi, in a
note.             
    Silver        fell 0.6% to $24.00 an ounce, platinum       
dipped 0.6% to $940.00, while palladium        was up 0.1% at
$2,328.02. 

 (Reporting by Asha Sistla in Bengaluru; Editing by Emelia
Sithole-Matarise and Kirsten Donovan)
  

Breakingviews

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.


Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up