(Updates prices)
* Stocks rally fizzles as vaccine hopes fade
* U.S. homebuilding dropped by the most on record in April
* FOMC minutes due at 1800 GMT
* For an interactive graphic tracking the global coronavirus spread, open https://tmsnrt.rs/3aIRuz7 in an external browser
By Brijesh Patel
May 20 (Reuters) - Gold prices rose on Wednesday as fears of prolonged global economic weakness leapt to the fore, pushing aside premature excitement about a possible coronavirus vaccine, and prompted investors to seek safe-haven bullion.
Spot gold XAU= was up 0.4% at $1,750.36 per ounce by 1215 GMT. U.S. gold futures GCv1 rose 0.7% to $1,757.20 per ounce.
"The situation worldwide is still tense as far as the coronavirus is concerned. The economic outlook and a lower interest rate environment and lower stock markets are helping gold prices to go higher," Afshin Nabavi, senior vice president at precious metals trader MKS SA, said.
Stocks markets drifted lower after a media report said the results from Moderna Inc's MRNA.O COVID-19 vaccine trial, which had buoyed global stocks this week, lacked detail. MKTS/GLOB
The latest batch of economic readings underscored the impact on the global economy of the coronavirus outbreak, which has infected almost 4.91 million people globally. Tuesday data showed, U.S. house-building dropped by the most on record in April and permits for future construction tumbled, intensifying fears over the deepest economic contraction in the second quarter since the Great Depression. is often used as a store of value during times of political and financial uncertainty.
In testimony before the U.S. Senate Banking Committee, Federal Reserve Chairman Jerome Powell said the Fed was looking at extending access to the credit facilities to additional borrowers, including states with smaller populations. the Fed does in the next few months will be pretty important, and certainly Powell did indicate that the rates would remain near zero for foreseeable future," ANZ analyst Daniel Hynes said. FEDWATCH
The focus shifts to the Federal Open Market Committee's April 28-29 policy meeting minutes at 1800 GMT.
Among other precious metals, palladium XPD= gained 0.7% to $2,074.02 per ounce, silver XAG= rose 0.3% to $17.45 and platinum XPT= climbed 1.5% to $845.14.