PRECIOUS-Gold faces worst week in two months as vaccine optimism weighs

(Updates prices)
* Gold set for third straight weekly fall
* Silver on track for 4% weekly fall
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Diptendu Lahiri
Nov 27 (Reuters) - Gold edged down on Friday, on path for
its worst weekly decline in two months, as hopes for a virus
vaccine and a rebound in economic growth dulled demand for the
safe-haven asset.
Spot gold XAU= fell 0.3% to $1,805.41 per ounce by 1233
GMT, down 3.5% on the week so far, which could be it's biggest
weekly loss since Sept. 25.
U.S. gold futures GCv1 were down 0.2% at $1,803.00 per
ounce.
"A break below $1,800 an ounce could well see further losses
towards $1,760 as positive sentiment around a possible vaccine
continues to weigh on demand for the traditional safe haven
asset," said Michael Hewson, chief market analyst at CMC Markets
UK.
The coronavirus drug by AstraZeneca AZN.L was touted as a
"vaccine for the world" because of its affordable cost.
However, the vaccine's effectiveness is now under more
rigorous scrutiny, which analysts claim could postpone its
regulatory approval. The dollar also weakened on improving risk aversion from
COVID-19 vaccine optimism and prospects for an easier transition
to a Biden administration, limiting losses in gold.
"The concern right now is that dissipated central bank
buying and outflows in ETFs," said independent analyst Ross
Norman.
"Looking at gold right now, it is still bearish in the
short-term and might go down further, but in the longer-term it
can't look any better given the ultra low interest rates and
prospects of more stimulus in the economy."
The economic impact of the virus pandemic has led global
central banks to keep interest rates at minimum.
Along with that, massive amount stimulus into the economy
has raised concerns of a higher inflation, helping gold to gain
more than 19% so far this year.
Lower interest rates reduce the opportunity cost of holding
gold.
In other metals, silver XAG= fell 1.3% to $23.15 per ounce
and was set to record a 4% weekly fall.
Platinum XPT= fell 0.6%, to $956.32 and palladium XPD=
was also down 0.6% at $2,369.62.