* Pfizer to apply for emergency U.S. OK for vaccine
* Platinum market seen in deficit this year and next -WPIC
* Graphic tracking world spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices)
By Sumita Layek
Nov 18 (Reuters) - Gold prices eased on Wednesday as optimism about Pfizer's successful vaccine trials countered concerns over rising coronavirus infections and bets for further economic support.
"The rollout of positive vaccine developments is reducing gold's lure as a safe haven. (Although) it still seems to be in a trading range, the big moves up seem to be finished for now," said ED&F Man Capital Markets analyst Edward Meir.
U.S. drugmaker Pfizer Inc (NYSE: PFE ) PFE.N said it was set to apply for emergency U.S. authorization after final results from its vaccine trial showed a 95% success rate with two months of safety data. seem to be progressing quickly and there are several others also in the pipeline ... that should help the global economy recover and be net bearish for gold. But in the meantime, the fact that we're not out of the woods yet and need more stimulus seems to be offering some support," Meir said.
Gold, considered a hedge against inflation and currency debasement, has gained 24% this year, benefiting from massive global stimulus and near zero-interest rates.
"It is worth recalling that the driver of investment flows into precious metals has ultimately been sourced from a powerful impulse lower in real rates," TD Securities said in a note.
"The U.S. Federal Reserve's continued attempt to spark higher inflation expectations should suppress real rates deeper into negative territory. This will continue to drive investment appetite for precious metals, as capital seeks to shelter itself from increasingly negative real rates."
The World Platinum Investment Council projected a market deficit in 2020 and 2021.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.