Spot gold plunged 1% to $ 1,770.56 an ounce at 13:37 GMT, and was down 5.7% so far this month. The metal also hit its lowest level since July 2 at $ 1,764.29 earlier in the session.
US gold futures fell 0.9% to $ 1,771.20 an ounce.
“The vaccine announcement has led to a lot of optimism in the market and we are seeing safe-haven asset exits like the dollar, treasury bills and the same is reflected in gold prices,” he said. said Craig Erlam, analyst at OANDA.
Gold prices fell as the dollar hit its lowest level in two and a half years.
Bullion fell more than $ 300 per ounce, from a record high of $ 2,072.50 per ounce reached in August.
“The short-term bullion trend has been compromised by the price falling through the support level at $ 1,850,” ActivTrades chief analyst Carlo Alberto De Casa said in a note.
“Investors have turned to other assets, seeking faster gains, although they have not forgotten that central banks will be forced to print money for many years to help the economy grow. recover from the Covid-19 crisis. ”
Optimism around the vaccine-driven economic recovery has put global stocks on track for their best month on record.
Data shows that Chinese factory activity grew at the fastest pace for more than three years in November, which also boosted risk sentiment.
Investors are now looking to Congressional testimony from US Federal Reserve Chairman Jerome Powell this week.
Silver fell 2.6% to $ 22.10 an ounce, gaining ground after falling 3.6% earlier in the session. The metal was on track for a monthly decline of around 6.6%.
Platinum rose 1.2% to $ 975, while palladium slipped 1.2% to $ 2,397 an ounce.