PRECIOUS-Gold dips as vaccine hopes offset softer dollar, virus woes

* Fresh restrictions in several U.S. states after virus
surge
* Asian shares rally, dollar subdued
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Updates prices)
By Eileen Soreng
Nov 17 (Reuters) - Gold prices eased on Tuesday as market
optimism over a second possible COVID-19 vaccine countered a
subdued dollar and concerns over rising coronavirus cases
globally.
Spot gold XAU= eased 0.1% to $1,886.83 per ounce by 0744
GMT, while U.S. gold futures GCv1 were down 0.1% to $1,885.40.
"The optimism over a COVID-19 vaccine is dampening demand
for the precious metal," said FXTM market analyst Han Tan.
While a Democrat-driven agenda in the U.S. Senate may result
in larger fiscal stimulus and thereby boost gold, a
vaccine-fuelled U.S. economic recovery may re-energize the
dollar and push gold to sub-$1,850 levels, Tan added.
Propping up bullion, the dollar index .DXY was down 0.1%.
USD/ US/
Gold dropped as much as 1.3% on Monday after Moderna
MRNA.O said its vaccine was 94.5% effective in preventing
COVID-19 based on interim data from a late-stage trial, becoming
the second U.S. drugmaker after Pfizer PFE.N to report results
exceeding expectations. Meanwhile, Asian shares pushed into record territory on
vaccine optimism. MKTS/GLOB
However, the monetary environment is still very
accommodative and may stay at current levels into spring 2021,
providing near-term support for gold, said Margaret Yang,
strategist at DailyFX.
Gold, considered a hedge against inflation and currency
debasement, has gained over 24% this year, mainly benefiting
from global stimulus to cushion the effect of the pandemic.
President-elect Joe Biden called on Congress to pass a new
coronavirus relief package, while new restrictions were placed
in several U.S. states to curb surging cases. Federal Reserve Vice Chair Richard Clarida on Monday
acknowledged the new vaccine as a positive for economic recovery
and said that the central bank would apply an expansive view of
the labour market before deciding on any rate hikes.
Silver XAG= fell 0.7% to $24.57 per ounce. Platinum XPT=
slipped 0.7% to $918.76, while palladium XPD= eased 0.4% to
$2,322.76.