Gold slumped 2%, breaking below the key $1,800 support level to a near five-month trough on Friday, as growing optimism about a quick vaccine-fuelled economic recovery and a smooth White House transition powered share market to fresh records.
Spot gold slid 1.4% to $1,785.11 per ounce by 11:43 a.m EDT (1643 GMT), earlier falling to its lowest since July 6 at $1,773.10 an ounce.
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 United States.
"It is believed that Biden will take a calmer approach towards trade with other countries like China and that is getting reflected in the stock market," said Natixis analyst Bernard Dahdah.
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