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PRECIOUS-Gold falls 1% as U.S. vaccine rollout boosts economic outlook

 (Adds analyst comments, updates prices)
    * European shares rise on Brexit talks extension, vaccine
rollout
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

    By Asha Sistla
    Dec 14 (Reuters) - Gold retreated 1% on Monday as optimism
for a faster economic recovery got a fillip from the imminent
rollout of COVID-19 vaccines in the United States, but hopes for
further fiscal and monetary stimulus limited bullion's losses.
    Spot gold        fell 0.7% to $1,825.50 per ounce by 1315
GMT, while U.S. gold futures        slipped 0.8% to $1,829.50.
    "The first (vaccine) announcement had the biggest effect and
people are less surprised as new announcements come through, so
it probably has had a bit of an impact (on gold)... but because
it's not the first one, it's less dramatic," said StoneX analyst
Rhona O'Connell. 
    European stocks were underpinned by hopes of a global
economic recovery, amid an extension of Brexit trade talks, plus
 a COVID-19 vaccination campaign that is set to begin in the
United States as early as Monday.                   
            
    Limiting gold's losses were reports of a $908 billion U.S.
COVID-19 relief plan that could be introduced as early as
Monday.                           
    Gold benefits from its appeal as a hedge against inflation
that could result from the unprecedented stimulus unleashed in
2020.
    Investors now await the U.S Federal Reserve's two-day policy
meeting starting on Tuesday.       
    "Overall (the Fed) will provide a kind of indication that
more support will come if the economy needs it, and that would
be music to the ears of stock market and probably gold investors
as well, because with the potential for more support, the dollar
should remain undermined," said Fawad Razaqzada, market analyst
with ThinkMarkets.
    "But if they (the Fed) are expecting a massive economic
rebound because of the vaccine rollouts then investors will
interpret that as the Fed being more hawkish...that will not be
good news for gold."
    Silver        was down 0.1% to $23.89 an ounce, while
platinum        gained 1% to $1,019.06 and palladium       
remained unchanged at $2,318.60.

 (Reporting by Asha Sistla in Bengaluru; Editing by Susan Fenton
and Jane Merriman)
  
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