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PRECIOUS-Gold set for second weekly dip on end of Fed stimulus, vaccine optimism

    * Gold's move above $2,000 in 2021 still likely - Citi
    * Outflows of about 40 tonnes so far in November from SPDR
ETF
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

 (Updates prices)
    By Asha Sistla
    Nov 20 (Reuters) - Gold was headed for a second weekly
decline on Friday on growing optimism about COVID-19 vaccines,
with the U.S. Treasury's call to end emergency loan programmes
also limiting bullion's safe-haven appeal.
    Spot gold        eased 0.1% at $1,866.38 per ounce by 1227
GMT and was down 1.2% for the week.
    U.S. gold futures        were up 0.1% at $1,864.
    U.S. Treasury Secretary Steven Mnuchin said key lending
programs at the Federal Reserve would expire on Dec. 31, casting
doubts over the future of fiscal support.             
    While the news weighed on risk sentiment, it did not stop
world stocks from gaining on the back of brightening prospects
for a faster economic recovery thanks to positive developments
on the vaccine front.               
    "The underlying momentum behind gold has dissipated," said
independent analyst Ross Norman, adding gold was pressured by
year-end profit-taking and investors liquidating long positions.
    Investors pulled $4 billion from gold, the biggest outflow
ever, amid a rush for riskier assets last week, BofA said on
Friday.             
    Also, holdings in the SPDR Gold Trust       exchange-traded
fund have seen net outflows of about 40 tonnes so far in
November.          
    "But it's important to remember that the gold bull run was
never predicated on COVID-19," and factors including a weak
economy and the likelihood of interest rates remaining subdued
for an extended period will continue to support it, Norman
added.
    Lower interest rates make gold an attractive bet by  
reducing the opportunity cost of holding the non-yielding metal,
with near-zero interest rates globally contributing to its about
23% gain for the year.
    "Positive COVID-19 vaccine developments should slow but not
end the secular gold bull cycle without a hawkish pivot in U.S.
monetary policy," Citi Research said in a note.             
    Silver        rose 0.2% to $24.13 per ounce. Platinum       
climbed 0.3% at $954.21, while palladium        rose 0.5% to
$2,337.40.

 (Reporting by Asha Sistla in Bengaluru; editing by David Evans)
  
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