PRECIOUS-Gold set to extend weekly fall on stimulus doubts, vaccine hopes

* Gold's move above $2,000 in 2021 still likely- Citi
* Outflows of about 40 tonnes so far in November from SPDR
ETF
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Adds comments, updates prices)
By Eileen Soreng
Nov 20 (Reuters) - Gold was set for a second weekly fall on
Friday as promising COVID-19 vaccine trials and U.S. Treasury
Secretary Steven Mnuchin's call to end the Federal Reserve's key
pandemic lending programmes eroded bullion's safe-haven appeal.
Spot gold XAU= fell 0.1% to $1,866.19 per ounce by 0832
GMT and was down 1.1% for the week.
U.S. gold futures GCv1 were up 0.2% at $1,865.40.
In a letter, Mnuchin told Fed Chairman Jerome Powell that
$455 billion allocated to the Treasury under the CARES Act
should be instead available for Congress to reallocate, sparking
uncertainty about stimulus programmes. "If the Fed does start shrinking its assistance programme
that could be a bit of headwind for gold again... The monetary
debasement argument that has supported gold could weaken," said
Lachlan Shaw, National Australia Bank's head of commodity
research.
Meanwhile, data from AstraZeneca AZN.L and Oxford
University showed their potential COVID-19 vaccine produced a
strong immune response in older adults. "Positive COVID-19 vaccine developments should slow but not
end the secular gold bull cycle without a hawkish pivot in U.S.
monetary policy," Citi Research said in a note, adding gold's
move above $2,000 in 2021 is still likely. [nFWN2I51F7
Indicative of sentiment, holdings in the SPDR Gold Trust
GLD exchange-traded fund saw net outflows of about 40 tonnes
so far in November. GOL/ETF
Investors pulled $4 billion from gold, the biggest outflows
ever, amid a rush for riskier assets last week, BofA said on
Friday. Gold, considered a hedge against inflation and currency
debasement, has gained 23% this year, benefiting mainly from
unprecedented stimulus unveiled to cushion the pandemic's
impact.
"Gold's long-term story still remains uncompromised because
the monetary policy is not going to change anytime soon," said
Kunal Shah, head of research at Nirmal Bang Commodities in
Mumbai, India.
Silver XAG= rose 0.3% to $24.17 per ounce. Platinum XPT=
gained 0.6% to $957.00, while palladium XPD= was up 0.3% at
$2,332.50.