Spot gold dropped 1.7% to $1,804.81 an oz by 11:40 a.m. EST (1640 GMT), after touching its lowest since July 17 at $1,800.01.
U.S. gold futures shed 1.9% to $1,802.40.
“Extra optimism in regard to the financial system, based mostly on the vaccines has taken a number of the protected haven standing away from the gold market,” mentioned David Meger, director of metals buying and selling at Excessive Ridge Futures.
“Much less political concern shifting ahead” has additionally lowered the necessity for protected havens, Meger added.
Wall Street’s major indexes jumped after Joe Biden moved nearer to take the reins of energy in January with a proper nod.
“The sport changer has been the power of all of the vaccines to point out good promise,” mentioned George Gero, managing director at RBC Wealth Administration, including it’s going to be an extended climb again up for gold underneath these circumstances.
On Monday, safe-haven bullion misplaced 1.9% after one other world drug firm AstraZeneca introduced promising trial outcomes towards a vaccine.
Additionally, Biden is predicted to appoint former Federal Reserve Chair Janet Yellen as U.S. Treasury secretary, and traders see Yellen as a power for extra fiscal motion to fight the financial disaster unleashed by the pandemic.
Bullion, a hedge in opposition to foreign money debasement and inflation, has continues to be up about 19% this yr, primarily pushed by unprecedented pandemic-led world stimulus.
Elsewhere, silver dipped 1.6% to $23.20 an oz, platinum jumped 2.8% to $951.66 and palladium dropped 0.9% to $2,334.95.
(Reporting by Shreyansi Singh in Bengaluru, extra reporting by Sumita Layek; modifying by Barbara Lewis)
By Shreyansi Singh