The metal has shed about 4.7% so far this week, the most since the week of March 13.
U.S. gold futures slipped 1.2% to $1,784 an 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 nations like China and that’s getting mirrored within the stock market,” stated Natixis analyst Bernard Dahdah.
“Nonetheless, with ultra-low rates of interest and prospects of extra stimulus within the financial system, gold seems strong in the long term,” Dahdah stated.
The financial influence of the COVID-19 pandemic has led international central banks to maintain rates of interest at a minimal.
Together with that, large quantities of stimulus into the financial system has raised considerations of a better inflation, serving to gold acquire greater than 17% to date this 12 months.
In different metals, silver dropped 3.4% to $22.65 per ounce and was set to put up a 6.3% weekly fall.
Platinum rose 0.3% to $964.86 and palladium gained 1.7% to $2,424.56.