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PRECIOUS-Gold firms as virus concerns eclipse vaccine optimism

Published 12/11/2020, 03:09 pm
Updated 12/11/2020, 07:54 pm
© Reuters.
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* Gold stuck in $1,850-$1,890 range- analyst

* U.S. weekly jobless claims data due at 1330 GMT

* Investors eye Moderna vaccine data

* Interactive graphic tracking global spread of coronavirus:

* https://tmsnrt.rs/3mvcUoa (Adds comments, updates prices)

By Eileen Soreng

Nov 12 (Reuters) - Gold edged up on Thursday as concerns over the economic fallout from surging COVID-19 cases outweighed positive developments surrounding a vaccine.

Spot gold XAU= rose 0.1% to $1,865.96 per ounce by 0820 GMT, while U.S. gold futures GCv1 were 0.3% higher at $1,866.90.

But prices have declined 4.5% so far this week after Monday's encouraging late-stage coronavirus vaccine trial data from Pfizer Inc (NYSE:PFE) PFE.N powered risk assets and sent safe-haven gold sharply lower.

"Gold traders are trying to strike a balance between positive vaccine news and a rising number of coronavirus cases around the globe," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading.

"I don't think the central banks and governments will cut back on stimulus efforts before the pandemic is fully under control."

European Central Bank President Christine Lagarde signalled further economic support on Wednesday, with cases expected to spike amid the onset of winter. tends to benefit from widespread stimulus measures from central banks as it is considered a hedge against inflation and currency debasement.

"The intensifying second coronavirus wave is likely to delay the economic recovery process, raising the level of uncertainty and supporting the precious metal," said Hitesh Jain, lead analyst at Mumbai-based Yes Securities.

Investors also awaited Moderna Inc's MRNA.O data on its experimental COVID-19 vaccine, which it is preparing to submit to an independent safety board to help determine its efficacy. weekly U.S. jobless claims data due at 1330 GMT is likely to offer further signals on the health of the world's largest economy.

Gold remains range-bound between $1,850 and $1,890, though it continues to see solid support on dips, notably from sticky longer-term holders and physical names, MKS PAMP said in a note.

Silver XAG= fell 0.7% to $24.07 an ounce. Platinum XPT= was steady at $865.21 and palladium XPD= climbed 0.9% to $2,335.94.

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