Gold Drops as Risk-On Returns

Gold dropped to four-month lows below $1,835 an ounce on Monday as renewed risk appetite across markets and a stronger dollar redirected money from the safe haven into stocks and other risk assets like oil.

U.S. gold futures for December delivery was down $38.30, or 2.1% at $1,834.10 by 10:53 AM ET (15:53 GMT), after tumbling to 1,831.25 earlier, its lowest since July.

The spot price of gold, which reflects real-time trades in bullion, was down $34.22, or 1.9%, to $1,836.85 after an intraday low at 1,833.91.

Wall Street’s Dow was up 0.8% while the Dollar Index edged 0.2% higher. Risk assets took off after progress reported by AstraZeneca (NASDAQ:AZN) in its Covid-19 vaccine trials.