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PRECIOUS-Gold eases as dollar firms, risk appetite gains

Published 11/11/2020, 10:05 pm
Updated 12/11/2020, 12:24 am
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* Dollar rises to near one-week high

* Traders eye U.S. initial jobless claims on Nov. 12

* Fed policymakers suggest more specific fiscal support

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

By Asha Sistla

Nov 11 (Reuters) - Gold eased on Wednesday on a firmer dollar and market optimism over a potential COVID-19 vaccine, but bets for continued monetary support to revive a pandemic hit economy capped bullion's declines.

Spot gold XAU= fell 0.3% to $1,870.20 per ounce by 1307 GMT, while U.S. gold futures GCv1 slipped 0.4% to $1,868.70.

The dollar, considered a rival safe-haven, rose 0.3% to a near one-week high, against a basket of currencies. USD/

"The (gold) market is very, very cautious. That's why, the moment there's news out or the dollar strengthens, the market goes with it," said Afshin Nabavi, senior vice president at precious metals trader MKS SA, adding that moves were also limited by the Veteran's Day holiday in the United States.

"The central banks will need to continue to make money to throw in the streets so that the system doesn't fall apart... So until we don't break (below) $1,820, it again feels like gold may want to test $1,900."

Gold fell as much as 5.2% on Monday after drugmaker Pfizer (NYSE:PFE) PFE.N said its COVID-19 vaccine was more than 90% effective based on initial trial results, with the resultant optimism continuing to fuel a strong run in equities. .EU MKTS/GLOB

But the breakthrough highlighted the logistical challenges of distributing hundreds of millions of doses once it becomes available. news has slightly reduced the need for stimulus but the vaccine is not yet available, said Quantitative Commodity Research analyst Peter Fertig.

Non-yielding gold has risen about 23% so far this year, supported mainly by near-zero interest rates and unprecedented global stimulus, since it's considered a hedge against likely inflation and currency debasement.

Federal Reserve policymakers on Tuesday highlighted the need for more targeted fiscal support from the government. now await U.S. weekly jobless claims on Thursday.

Silver XAG= was down 0.3% at $24.14 per ounce. Platinum XPT= fell 0.5% to $878.84, while palladium XPD= rose 0.2% to $2,459.61.

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