The price of gold fell today, Monday, and is on track to record the worst monthly performance in 4 years, as optimism about an economic recovery driven by the success of the vaccine against Corona stimulated investors to buy high-risk traditional assets.
In spot transactions, gold fell about 1 percent to 1771.22 dollars an ounce, by 04:52 GMT, to fall 5.7 percent since the beginning of this month, in the largest decline since November 2016.
While US gold futures fell 0.7 percent to $ 1775 an ounce.
“The optimism stemming from the vaccine regarding an economic recovery is effectively undermining the attractiveness of safe-haven investments like gold,” said Michael McCarthy, chief strategist at CMC Markets, adding that the fall in the price of the yellow metal below $ 1,800 is another incentive for selling..
Sentiment was also boosted, as data showed that factory activities in China grew at the fastest pace in more than three years, this November..
Investors are now awaiting testimony by Jerome Powell, the governor of the US Federal Reserve, before Congress.
As for other precious metals, silver fell 2.9 percent to $ 22.03 an ounce, platinum fell 0.5 percent to $ 959.13 an ounce, and palladium fell 0.2 percent to $ 2,420.36 an ounce.