PRECIOUS-Gold steadies as virus surge overshadows vaccine optimism

* Moderna says vaccine 94.5% effective in preventing
COVID-19
* Vaccine is good news, but deployment to take a while
-strategist
* U.S. Fed Vice Chair Clarida to speak at 1900 GMT
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Updates prices)
By Sumita Layek
Nov 16 (Reuters) - Gold recovered from a more than 1% dip on
Monday as investors weighed immediate concerns over rising
coronavirus cases and bets on further economic support even as
Moderna became the second drugmaker to declare effective vaccine
test results.
Spot gold XAU= was steady at $1,887.10 per ounce at 01:49
p.m. ET (1849 GMT). U.S. gold futures GCv1 settled 0.1% higher
at $1,887.80.
Bullion dropped as much as 1.3% after Moderna MRNA.O said
its experimental vaccine was 94.5% effective, but this was less
than the more than 5% slump after Pfizer PFE.N last Monday
announced its vaccine was over 90% effective.
"Vaccine is very very good news, but the problem is it's
going to take quite a while to deploy it even in the developed
countries," said Bart Melek, head of commodity strategies at TD
Securities, adding the market had already adjusted positioning
last week on the Pfizer news.
"Vaccine or no vaccine we're going to continue to have a
hard time economically well into the third quarter of next year,
we're going to need massive amounts of monetary stimulus and
we're very likely to get fiscal stimulus, which ultimately
should help move inflation closer to target."
Gold, considered a hedge against inflation and currency
debasement, has gained over 24% this year, mainly benefiting
from global stimulus measures to cushion the effect of the
pandemic.
Coronavirus cases crossed the 11-million mark in the United
States on Sunday. While markets anticipate a return to normal in the second
half of 2021, that "still leaves a massive gap in some of the
economies globally that needs to be filled by governments and
central banks", said Saxo Bank analyst Ole Hansen.
Investors are now awaiting U.S. Federal Reserve Vice Chair
Richard Clarida's speech at 1900 GMT. Silver XAG= gained 0.1% to $24.65 per ounce. Platinum
XPT= rose 3.5% to $919.90, while palladium XPD= eased 0.1%
to $2,321.24.