(Updates prices, adds context)
* Gold's break below $1,800/oz could prompt further dip
-analyst
* European shares gain on vaccine optimism
* EU reaches deal with Moderna for vaccine supply
* Interactive graphic tracking global spread of coronavirus:
* https://tmsnrt.rs/3aIRuz7 in an external browser
By Asha Sistla
Nov 24 (Reuters) - Gold slid to a four-month low on Tuesday,
extending a sharp slide from the previous session as optimism
over the development of COVID-19 vaccines drove investors to
riskier assets.
Spot gold XAU= dropped 1.3% to $1,812.81 an ounce by 1218
GMT, having touched its lowest since July 17 at $1,804.70, while
U.S. gold futures GCv1 lost 1.5% to $1,810.60.
European equities rose on a possible easing of COVID-19
curbs and progress on vaccines from the likes of AstraZeneca
AZN.L , Pfizer PFE.N and Moderna MRNA.O . .EU European Union has reached a deal with U.S. biotech
company Moderna for supply of its vaccine, an EU official told
Reuters on Tuesday. "We had news about the vaccine, saw yields moving higher in
U.S.; even the dollar went lower and gold is not profiting from
that ... This is a very bad sign for gold and means there is
underlying weakness building up," said ABN Amro analyst
Georgette Boele.
A break below support at $1,800 would trigger further price
declines, Boele added.
The dollar held close to its lowest in nearly three months,
potentially making gold cheaper for buyers with other
currencies. USD/ US/
Equities markets were also supported by clearance for U.S.
President-elect Joe Biden's transition to the White House, even
though President Donald Trump stopped short of conceding defeat
in the Nov. 3 election.
"The acknowledgement of Biden's victory from the Republicans
is likely to reduce the risk of further tensions and represents
a supportive element for stocks, while haven assets such as gold
are suffering," ActivTrades' chief analyst Carlo Alberto De Casa
said in a note.
However, central banks will still be forced to print a huge
amount of money, which could revive investor interest in gold
before long, De Casa added.
Gold is considered a hedge against inflation and currency
debasement that is likely to result from unprecedented global
stimulus to fight the economic impact of the COVID-19 pandemic.
In other precious metals, silver XAG= dipped 1.4% to
$23.25 an ounce, platinum XPT= was flat at $925.87 and
palladium XPD= dropped 1.4% to $2,323.13.