for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

PRECIOUS-Gold inches up on muted dollar, mounting virus cases

    * Curbs tighten in many U.S. Midwest states after virus
cases rise
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

 (Adds comments, updates prices)
    By Eileen Soreng
    Nov 11 (Reuters) - Gold edged up on Wednesday, buoyed by a
softer dollar as investors weighed the logistical challenges
surrounding the mass roll-out of a potential COVID-19 vaccine,
with a surge in new infections boosting bets of further economic
support.
    Spot gold        rose 0.1% to $1,878.54 per ounce by 0721
GMT.    
    U.S. gold futures        were little changed at $1,876.40. 
    The dollar index        was down 0.1%, making gold more
attractive to holders of other currencies.       
    "Coronavirus cases continue to rise in U.S. and Europe and
we will require further monetary and fiscal measures... In that
sense, the overall backdrop for gold has not turned negative,"
said Harshal Barot, senior research consultant for South Asia at
Metals Focus.
    "But since risk sentiment has improved, we are going to see
certain liquidations coming in." 
    Federal Reserve policymakers said on Tuesday that surging
coronavirus cases threatened to slow U.S. economic growth once
more in coming months and that more targeted government aid was
needed.             
    California and several states across the U.S. Midwest
tightened restrictions again as infections spiked.             
    Spot gold fell 4.6% on Monday, its biggest daily fall since
Aug. 11, after drugmaker Pfizer         said its COVID-19
vaccine was more than 90% effective based on initial trial
results, boosting risk appetite.                         
    However, the breakthrough has brought to light the
logistical challenges of distributing hundreds of millions of
doses once it becomes available.              
    "As people become more aware about the dimensions or the
details of the vaccine, that (equities) rally could wane," said
Michael Langford, executive director at corporate advisory and
consultancy firm AirGuide.
    Meanwhile, concerns rose about a rough transition of power
in the United States as President Donald Trump pursued a flurry
of lawsuits challenging the election results.             
    Silver        rose 0.3% to $24.29 per ounce. Platinum       
gained 0.3% to $885.45, while palladium        was up 0.4%
at$2,463.64. 
    

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

Breakingviews

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.


Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up