PRECIOUS-Gold dips to four-month low as vaccine hopes take centre stage

  • Reuters
  • Commodities News
PRECIOUS-Gold dips to four-month low as vaccine hopes take centre stage

(Updates prices, adds context)

* Gold's break below $1,800/oz could prompt further dip -analyst

* European shares gain on vaccine optimism

* EU reaches deal with Moderna for vaccine supply

* Interactive graphic tracking global spread of coronavirus:

* in an external browser

By Asha Sistla

Nov 24 (Reuters) - Gold slid to a four-month low on Tuesday, extending a sharp slide from the previous session as optimism over the development of COVID-19 vaccines drove investors to riskier assets.

Spot gold XAU= dropped 1.3% to $1,812.81 an ounce by 1218 GMT, having touched its lowest since July 17 at $1,804.70, while U.S. gold futures GCv1 lost 1.5% to $1,810.60.

European equities rose on a possible easing of COVID-19 curbs and progress on vaccines from the likes of AstraZeneca AZN.L , Pfizer (NYSE: PFE ) PFE.N and Moderna MRNA.O . .EU European Union has reached a deal with U.S. biotech company Moderna for supply of its vaccine, an EU official told Reuters on Tuesday. had news about the vaccine, saw yields moving higher in U.S.; even the dollar went lower and gold is not profiting from that ... This is a very bad sign for gold and means there is underlying weakness building up," said ABN Amro analyst Georgette Boele.

A break below support at $1,800 would trigger further price declines, Boele added.

The dollar held close to its lowest in nearly three months, potentially making gold cheaper for buyers with other currencies. USD/ US/

Equities markets were also supported by clearance for U.S. President-elect Joe Biden's transition to the White House, even though President Donald Trump stopped short of conceding defeat in the Nov. 3 election. acknowledgement of Biden's victory from the Republicans is likely to reduce the risk of further tensions and represents a supportive element for stocks, while haven assets such as gold are suffering," ActivTrades' chief analyst Carlo Alberto De Casa said in a note.

However, central banks will still be forced to print a huge amount of money, which could revive investor interest in gold before long, De Casa added.

Gold is considered a hedge against inflation and currency debasement that is likely to result from unprecedented global stimulus to fight the economic impact of the COVID-19 pandemic.

In other precious metals, silver XAG= dipped 1.4% to $23.25 an ounce, platinum XPT= was flat at $925.87 and palladium XPD= dropped 1.4% to $2,323.13.

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