Gold plunged to a 4-month low following rising risk appetite following the release of positive US economic data and reports on President Donald Trump finally allowing a formal transition for Joe Biden's administration to take over the White House.
The move, taken 20 days after the US presidential election, is expected to remove some of the uncertainty about the country's politics that burdens investors.
Gold prices have previously been under pressure following a drastic surge in the US dollar driven by stronger-than-expected US manufacturing and services PMI data despite the threat of rising Covid-19 cases.
On Monday, IHS Markit reported that the US manufacturing PMI index rose to 56.7 in November from 53.4 previously recorded, indicating that sentiment in the manufacturing sector was at its highest level in more than six years.
Meanwhile, the US services sector recorded an increase of 57.7 from 56.9 in the previous month, showing sentiment at its highest level in more than five years.
The precious metal traded low at $ 1,824 per ounce, approaching support levels at $ 1,800. Meanwhile, gold futures fell at $ 1,820 per ounce (12.30pm Malaysian time).
