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PRECIOUS-Gold range-bound, caught between vaccine hopes and rising virus cases

Published 18/11/2020, 03:23 pm
© Reuters.
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* Fed's Powell says "long way to go" for economy to recover

* Platinum market in deficit this year and next- WPIC

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Adds comments, updates prices)

By Eileen Soreng

Nov 18 (Reuters) - Gold inched up and moved in a narrow range on Wednesday, as investors weighed the prospects of a COVID-19 vaccine against concerns over rising cases and the possibility of further economic support from the U.S. Federal Reserve.

Spot gold XAU= rose 0.1% to $1,880.81 per ounce by 0707 GMT, while U.S. gold futures GCv1 were down 0.4% at $1,878.30.

Gold shed as much as 1.3% on Monday after Moderna MRNA.O said its vaccine was 94.5% effective in a late-stage trial. a lack of catalyst for gold to rally ... Weighing on prices is a slight depression in inflation expectations because it's quite clear now that the U.S. fiscal stimulus will probably not be as sizeable as previously imagined," said IG Markets analyst Kyle Rodda.

The emphasis is now on the Fed to support the U.S. economy through the surge in coronavirus cases, he added.

Fed chair Jerome Powell said on Tuesday there's "a long way to go" for the economy to recover and that the central bank is committed to using all its tools to support the recovery. data showed U.S. retail sales rose less than expected in October. has clearly run out of upward momentum, with the short-term market clearly long," said Jeffrey Halley, senior market analyst at OANDA, adding, a daily close below key support around the $1,867 level could signal a deeper correction.

"I expect monetary policy globally, and especially from the Fed to be ultra-easy right through 2021."

Gold, considered a hedge against inflation and currency debasement, has gained over 24% this year, mainly benefiting from massive global stimulus.

Silver XAG= rose 0.1% to $24.48 per ounce and palladium XPD= was up 0.3% to $2,323.74.

Platinum XPT= gained 0.6% to $930.40.

The World Platinum Investment Council projected a market deficit of 1.2 million ounces and 224,000 ounces in 2020 and 2021, respectively.

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