Spot gold slid 1.3% to $1,787.46 per ounce by 1:15 p.m EST (1815 GMT), earlier falling to its lowest since July 6 at $1,773.10 an ounce.
The metal has shed about 4.5% so far this week, the most since the week of Sept. 25.
U.S. gold futures settled down 1.3% at $1,781.90 per ounce.
“As soon as prices touched below the key $1,800 level, it triggered a sell-off. It is probable that prices might test the $1,750 level given we have a strong fundamental reason like the vaccine,” said OANDA analyst Craig Erlam.
Further weighing on gold, U.S. equities raced to a record on the vaccine optimism and as investors bet on calmer global trade under a Joe Biden administration in the US.
“It’s believed that Biden will take a calmer method in direction of commerce with different international locations like China and that’s getting mirrored within the stock market,” mentioned Natixis analyst Bernard Dahdah.
“Nevertheless, with ultra-low rates of interest and prospects of extra stimulus within the economic system, gold appears to be like sturdy in the long term,” Dahdah mentioned.
The financial impression of the COVID-19 pandemic has led world central banks to maintain rates of interest at a minimal.
Together with that, large quantities of stimulus into the economic system has raised issues of a better inflation, serving to gold acquire greater than 17% to this point this 12 months.
In different metals, silver dropped 3.5% to $22.63 per ounce and has fallen 6.4% to this point this week.
Platinum rose 0.2% to $963.45 and palladium gained 1.6% to $2,420.18.
(Reporting by Diptendu Lahiri and Swati Verma in Bengaluru, Enhancing by Chizu Nomiyama and Timothy Heritage)
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