(Adds analyst comments, updates prices)
* Pfizer, J&J make progress with trials and regulatory
approvals
* Trump administration proposed $916 bln aid package
* Dovish Fed could re-ignite gold rally- analyst
* Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa
By Asha Sistla
Dec 9 (Reuters) - Gold prices on Wednesday retreated from a
two-week peak scaled in the previous session as optimism on
COVID-19 vaccine developments led investors to opt for riskier
assets such as equities.
Spot gold fell 0.7% to $1,857.70 per ounce by 1017
GMT, after hitting its highest since Nov. 23 at $1,875.07 on
Tuesday. U.S. gold futures slipped 0.7% to $1,862.60.
"The higher risk appetite seems to be gaining the upper hand
again and coupled with the vaccine news, it seems to be weighing
on gold prices," said Commerzbank analyst Daniel Briesemann.
Also, while the fresh attempt in the U.S. for a new fiscal
support package supported gold on Monday, today, the news is
acting as an additional trigger for risk sentiment rather than
gold.
Gold tends to gain from stimulus since it is seen as hedge
against the inflation that could result from it.
Global stocks reached record highs on Wednesday due to a
boost from the healthcare sector on positive coronavirus vaccine
news.
After Britain on Tuesday became the first Western nation to
start vaccinating its population with the Pfizer/BioNtech
COVID-19 vaccine, Pfizer and Johnson & Johnson
made further progress with trials and regulatory approvals,
receptively.
On the stimulus front, 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.
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," said Jeffrey Halley, a senior market
analyst at OANDA.
Silver slipped 1.3% to $24.25, while platinum
edged 0.1% higher to $1,023.46 and palladium was down
0.3% to $2,302.73.
(Reporting by Asha Sistla and Nakul Iyer in Bengaluru, editing
by Louise Heavens)
source: reuters.com