* Gold posted biggest daily decline in three months on Monday
* Equities ease after vaccine-inspired rally
* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices)
By Brijesh Patel
Nov 10 (Reuters) - Gold regained some lost ground on Tuesday after a sharp fall in the previous session as concerns over global economic recovery and expectations of further fiscal and monetary stimulus offered support to the safe-haven metal.
"Gold is trying to find equilibrium this morning, 24 hours after the Pfizer earthquake rearranged the landscape. I expect gold will continue to grind back higher, but it's going to take a bit longer," said Tai Wong, head of base and precious metals derivatives trading at BMO.
"The fundamental factors for gold remain quite friendly. Stimulus is on the cards and with a vaccine we will get reflation."
Gold lost 4.6% on Monday, its biggest daily fall since Aug. 11, after U.S. drugmaker Pfizer Inc (NYSE: PFE ) PFE.N said its COVID-19 vaccine was more than 90% effective based on initial trial results, lifting U.S. equities to record highs. shares eased on Tuesday as worries about the extent of the COVID-19 pandemic's economic impact resurfaced. .N
"The fiscal and monetary response to the pandemic globally will remain highly accommodative. This will continue to provide gold and silver, as well as platinum, with reason to go higher," HSBC analysts said in a note.
"But the psychological relief and shift in risk sentiment may still weigh on gold and the other metals, with the exception of palladium, in the immediate term."
Gold tends to benefit from stimulus spending because it is considered a hedge against inflation risks and currency weakness.
Meanwhile, Dallas Federal Reserve Bank President Robert Kaplan said he was "cautious and concerned" about downside economic risks in the short term because of the resurgence of the coronavirus. XAG= gained 0.9% to $24.28 an ounce, platinum XPT= climbed 1.8% to $881.61 and palladium XPD= eased 0.7% to $2,460.33.
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.