PRECIOUS-Gold falls as investors fret over U.S. stimulus delay

(Adds comment, updates prices)
* ECB expected to unveil fresh stimulus in policy decision
* U.S. weekly jobless claims data due at 1330 GMT
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3aIRuz7
in an external browser

By Nakul Iyer
Dec 10 (Reuters) - Gold prices edged lower on Thursday,
following a steep sell-off in the previous session, as a
breakthrough in long-running U.S. fiscal stimulus negotiations
remained elusive.
Spot gold XAU= slipped 0.2% to $1,835.40 per ounce by 0707
GMT, after falling as much as 2.5% on Wednesday. U.S. gold
futures GCv1 were steady at $1,839.20.
"Gold has struggled as markets are disappointed with the
inability of U.S. lawmakers to agree on a fiscal deal they were
anticipating," said Lachlan Shaw, National Australia Bank's head
of commodity research.
Lawmakers in the United States extended federal government
funding by a week to give them more time to agree on a
coronavirus relief package. But U.S. Senate Majority Leader
Mitch McConnell said they were still looking for a way forward.

"We could be seeing a regime change in gold markets as its
correlation to real yields has weakened, due to investors
continuing to move into riskier assets, creating a challenging
outlook for safe-havens like gold," Shaw said.
Investors now await the European Central Bank's monetary
policy decision, due at 1245 GMT, where it is expected to unveil
fresh stimulus measures, and U.S. weekly jobless claims data,
due at 1330 GMT.
"Any immediate gains in spot gold would have to battle the
ongoing tide of outflows from gold exchange-traded funds," said
FXTM market analyst Han Tan. GOL/ETF
"Ultimately, gold is due for another boost, either from the
next injection of U.S. fiscal stimulus, or stronger signals out
of the Federal Reserve with regards to boosting inflationary
pressures."
Meanwhile, a British regulator cautioned against the use of
Pfizer's COVID-19 vaccine for those with allergies, after two
people suffered adverse reactions, cooling optimism over a
smooth vaccine rollout. Among other precious metals, silver XAG= fell 0.6% to
$23.79 per ounce and platinum XPT= dropped 0.2% to $999.21,
while palladium XPD= rose 0.8% to $2,283.73.