The news from major pharma companies points to their success in vaccine trials and amid it gold has been seeing the worst decline in more than 4 years.
After the MCX trading began late on Monday, it retreated lower by almost 1% and closed at Rs. 47763 per 10 gm. This is as the safe haven appeal of the yellow metal took a toll as economic recovery hopes give wings to risk-on sentiment.
In the month of November, gold shed a steep over 5 percent. In the international markets, gold has been dragged to its lowest in 4 months to $1775.11 per ounce.
"Vaccine-inspired optimism about an economic bounce is really eroding the attraction of safe-haven investments like gold," said Michael McCarthy, chief strategist at CMC Markets.
Further, gold has been seeing the fall despite the decline dollar which is also dragged to a more than 2-year low. "Gold looks bearishly biased and I don't see any signal of a trend reversing anytime soon," said Margaret Yang, a strategist at DailyFX.
Though gold has reached over-sold territory, the overall trend is so bearish that a technical rebound may not last for long and be sustainable, she added.