Gold slipped on Monday and was on track for its worst month in four years, as optimism over a coronavirus vaccine-led economic rebound that propelled equities to record highs dulled the metal’s safe-haven appeal.
Spot gold fell 1.2% to $1,766.26 per ounce by 0301 GMT. Gold is down 5.9% so far this month, its biggest monthly decline since November 2016.
US gold futures dropped 0.5% to $1,772.60.
“Vaccine inspired optimism about an economic bounce is really eroding the attraction of safe-haven investments like gold... the breach of $1,800 is feeding into the market imagination and appears to be another trigger,” said Michael McCarthy, chief strategist at CMC Markets.
Vaccine optimism drove the dollar to a more than two-year low and put world stocks on course for a record month of gains.
Also bolstering risk sentiment was data that showed China’s factory activity expanded at the fastest pace in more than three years in November.