Gold retreated more than 1% on Monday after drugmaker Moderna declared an effective COVID-19 vaccine in tests, bolstering hopes for a swifter economic recovery and accelerating a shift into riskier assets.

Spot gold was down 0.7% to $1,875.71 per ounce at 1251 GMT, having earlier hit its highest since Nov. 9 at $1,898.81. US gold futures slipped 0.7% at $1,873.80.

Moderna became the second company in a week to report late-stage clinical trial results that exceeded expectations, but gold's price reaction was relatively mild compared to the more than 5% slump after Pfizer last Monday announced its vaccine was over 90% effective.

Moderna's announcement added further fuel to a global stocks rally that had also been helped by strong Chinese factory output data.

"We have similar news based on the headlines, and we also have a knee-jerk reaction in the gold market," said Julius Baer analyst Carsten Menke.

"But certainly those (short-term traders) who were flushed out of the market last week didn't come back in the meantime, so the potential for another sell-off like last week was just lower."

Meanwhile, the global coronavirus crisis showed no signs of abating, with cases crossing the 11-million mark in the United States on Sunday.

While the markets anticipate a return to normalcy 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.

Gold, which benefits from stimulus measures since it's considered a hedge against inflation and currency debasement, has gained 24% this year.

Investors are also awaiting economic cues from speeches by U.S. Federal Reserve policymakers this week, beginning with Vice Chair Richard Clarida at 1900 GMT.

Silver eased 0.8% to $24.44 per ounce. Platinum rose 0.3% to $890.97, while palladium climbed 0.9% to $2,344.25.