PRECIOUS-Gold slips from 2-week high as equities climb on vaccine optimism

(Updates prices)
* Dovish Fed could re-ignite gold rally- analyst
* J&J vaccine could obtain late-stage trial results
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Nakul Iyer
Dec 9 (Reuters) - Gold prices retreated from a two-week peak
on Wednesday as positive coronavirus vaccines developments
encouraged investors to move into higher-risk assets, sending
world shares to a record high.
Spot gold XAU= fell 0.7% to $1,858.70 per ounce by 0759
GMT, after hitting its highest since Nov. 23 at $1,875.07 on
Tuesday, while U.S. gold futures GCv1 fell 0.5% to $1,864.80.
"Market action across global markets is swinging between
vaccine driven optimism and hopes for U.S. fiscal stimulus... so
risk sentiment is positive," said Harshal Barot, a senior
research consultant for South Asia at Metals Focus.
Global equities rose on Wednesday after Britain became the
first Western country to begin a major vaccination campaign and
Johnson & Johnson JNJ.N said it could obtain late-stage
vaccine trial results earlier than expected. MKTS/GLOB
Gold is much better placed to weather any vaccine-related
news and remains a buy on dips trade, Jeffrey Halley, a senior
market analyst at OANDA, said.
U.S. President Donald Trump's administration proposed a $916
billion aid package, while Congressional lawmakers were still
working on resolving differences on the inclusion of business
liability protections and state and local government aid.

Stimulus measures will be key as they will weaken the dollar
and generate more liquidity that will move into gold, said
Michael Langford, executive director at corporate advisory and
consultancy firm AirGuide.
Investors also looked forward to the U.S. Federal Reserve
two-day policy meeting next week for clues on the direction of
monetary policy.
"A dovish FOMC, particularly in the scenario where they look
to cap rates in the longer end of the U.S. yield curve, should
relight the gold rally," OANDA's Halley said.
Silver XAG= slipped 1.7% to $24.15, while platinum XPT=
dropped 0.3% to $1,019.50 and palladium XPD= was down 0.2% to
$2,305.00.