Gold flat as concerns over rising virus cases offset vaccine optimism

(Reuters) - Gold prices were little changed on Tuesday, as concerns over spiking U.S. coronavirus cases offset pressure from vaccine optimism brought about by a positive vaccine trial data.

 

FUNDAMENTALS

* Spot gold

* Bullion dropped as much as 1.3% on Monday after drugmaker Moderna said its experimental vaccine was 94.5% effective in preventing COVID-19 based on interim data from a late-stage trial.

* President-elect Joe Biden on Monday called on Congress to come together and pass a new coronavirus relief package.

* Forty U.S. states have reported record increases in COVID-19 cases in November, while 20 have seen a record rise in deaths and 26 reported record hospitalizations, according to a Reuters tally of public health data.

* Successful tests of two coronavirus vaccine candidates have increased the chance of a faster than expected U.S. economic recovery, Federal Reserve Vice Chair Richard Clarida said on Monday.

* The euro zone is facing a drawn-out recovery from a deep recession and needs more support from both the European Central Bank and governments, several policymakers said on Monday.

* Asian stocks opened firmer after the S&P 500 and Dow Jones indexes hit record highs on news of another promising coronavirus vaccine. [MKTS/GLOB]

* Speculators cut their net long position by 10,995 contracts to 110,957 on COMEX gold in week to Nov. 10, he U.S. Commodity Futures Trading Commission (CFTC) said on Monday.

* Silver fell 0.1% to $24.74 per ounce. Platinum was flat at 925.50, while palladium fell 0.4% to $2,323.30.

 

(Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich)