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RPT-PRECIOUS-Gold listless as investors weigh vaccine cheer against rising cases

Published 18/11/2020, 09:52 pm
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* Dollar falls to over 1-week low, global shares little changed

* Platinum market seen in deficit this year and next - WPIC

* Fed's Powell says "long way to go" for economy to recover

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa

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By Asha Sistla

Nov 18 (Reuters) - Gold held to a tight range on Wednesday as investors were caught between optimism over the development of novel coronavirus vaccines and the chances of more economic support as the number of infections in some places surged.

Spot gold XAU= was little changed at $1,877.65 per ounce by 1026 GMT, while U.S. gold futures GCv1 were down 0.5% to $1,876.60.

Gold shed more than 1% on Monday after Moderna MRNA.O became the second U.S. drugmaker to announce late-stage successful vaccine trials. one side, optimism surrounding the latest vaccine developments is supporting risk sentiment, weighing on safe-haven assets. However, the rapid rise in the number of coronavirus cases in Europe and U.S. continues to foster a sense of unease and caution," said Lukman Otunuga, senior research analyst at FXTM.

Gold "is likely to derive strength from a weaker dollar in the near term until more news on the vaccine front is revealed".

The dollar index .DXY fell 0.2%, making gold cheaper for those holding other currencies. USD/

"We've seen a lot of good news in terms of the (U.S.) election passing without much disruption and the vaccine announcement, so we're maybe seeing a little bit of fatigue and consolidation on the back of that," said OANDA analyst Craig Erlam.

The rising coronavirus cases also offset the vaccine-driven lift in global equities. MKTS/GLOB .EU

Looking ahead, an expansion in the U.S. Federal Reserve's quantitative easing programme in December may weaken the dollar and prove a tailwind for bullion, Otunuga said.

Fed chair Jerome Powell said on Tuesday the central bank was committed to using all its tools to drive an economic recovery. considered a hedge against inflation and currency debasement, has gained more than 24% this year, benefiting from massive global stimulus.

Silver XAG= rose 0.2% to $24.51 per ounce, palladium XPD= was up 1% to $2,340.87.

Platinum XPT= gained 0.9% to $933.53.

The World Platinum Investment Council projected a market deficit in 2020 and 2021.

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