* Pfizer, BioNTech to seek U.S. emergency use vaccine
authorization
* Wall Street hits record highs
* Silver drops over 7%
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa
(Updates prices)
By Sumita Layek
Nov 9 (Reuters) - Gold tumbled over 4% on Monday as news of
the first successful late-stage COVID-19 vaccine trials prompted
investors to dump safe-haven bullion and flock to riskier
assets.
Spot gold XAU= was down 4.8% at $1,857.61 per ounce by
1:47 p.m. EST (1847 GMT), while U.S. gold futures GCv1 settled
down 5% at $1,854.40.
Spot prices beat a sharp retreat from a near two-month peak
of $1,965.33 hit earlier amid a weaker dollar and hopes for more
stimulus following Joe Biden's victory in the U.S. elections.
Equities surged after Pfizer Inc PFE.N said its
experimental COVID-19 vaccine was more than 90% effective.
Pfizer and German partner BioNTech SE 22UAy.DE said they
expect to seek U.S. emergency use authorization later this
month. .N
"(The news) really exceeded everyone's best-case scenarios.
There was growing nervousness that we might not get a strong
vaccine result, so this unleashed the risk-on trade and for
gold, signalled a massive exodus of safe-haven plays," said
Edward Moya, senior market analyst at OANDA.
However, he added "the economy is still in need of much
support and only 50 million (vaccine) doses will be available,
so we're not in the clear with the virus and the calls for
stimulus will be growing."
Bullion, a hedge against currency debasement and inflation,
has climbed 22% this year, mainly driven by unprecedented global
pandemic-led stimulus.
"If you think that you're living in the best of all worlds,
then you don't need gold," said Commerzbank analyst Daniel
Briesemann.
"However, this assessment seems to be premature. And we've
often seen in the past that at prices below $1,900, buying
interest will come into the market - we would expect that to
happen again this time."
Other precious metals also sold off, with silver XAG=
sliding 7.3% to $23.73 per ounce, platinum XPT= falling 2.9%
to $863.02 and palladium XPD= shedding 0.7% to $2,474.51.
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Gold slumps on vaccine news https://tmsnrt.rs/2IozK23
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