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PRECIOUS-Gold gains on investor bets for further monetary support

    * More positive vaccine news negative short term for gold-
analyst
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

 (Updates prices)
    By Asha Sistla
    Nov 10 (Reuters) - Gold rebounded on Tuesday, rising more
than 1%, as investors bet on continued monetary support from
central banks to revive a pandemic-hit global economy.
    Gold had fallen sharply on Monday as optimism for a COVID-19
vaccine lifted appetite for riskier assets.
    Spot gold        climbed 0.9% to $1,877.86 per ounce by 1321
GMT on Tuesday, while U.S. gold futures        rose 1.2% to
$1,876.40.
    Prices slumped as much as 5.2% on Monday after U.S.
drugmaker Pfizer Inc         said its COVID-19 vaccine was more
than 90% effective based on initial trial results.             
    Attributing gold's gains to investors reassessing their
positions after Monday's "euphoric moves", OANDA analyst Craig
Erlam said a break above $1,900 would suggest gold might be
realigning on likely monetary easing by the U.S. Federal Reserve
and the return of its safe-haven status.
    But more positive vaccine news will weigh on gold in the
short term, Erlam added.
    While vaccine optimism boosted risk appetite, concerns
emerged over a mass roll-out of the new vaccine amid lingering
uncertainties fuelled by surging COVID-19 cases globally.
                                     
    "We remain a long way from seeing an overt shift away from
the easing monetary policy stance," said FXTM market analyst Han
Tan.
    "Central bankers are likely to remain data dependent in
assessing recoveries in their respective economies, and would
need more concrete proof beyond mere green shoots of
vaccine-related hope before making an about-turn in their policy
biases."             
    Massive stimulus and near-zero interest rates globally,
which reduce the opportunity cost of holding non-yielding
assets, have driven gold about 23% higher this year as the
precious metal is considered a hedge against currency debasement
and inflation.
    Dallas Fed President Robert Kaplan said on Monday the
resurgence of COVID-19 poses risks to the economy, while
Cleveland Fed President Loretta Mester said the central bank's
emergency lending programmes are still needed.             
            
    Silver        rose 0.1% to $24.10 an ounce. Platinum       
inched up 0.1% to $866.81 and palladium        was up 0.1% to
$2,480.22. 

 (Reporting by Asha Sistla and Nakul Iyer in Bengaluru, editing
by Louise Heavens and Susan Fenton)
  

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