Gold plunged lower to a four-week low amid the strengthening of the US dollar at the start of trading earlier in the week.
Spot gold traded around $ 1,833 per ounce (11.05am Malaysian time) after hitting a one-month low of $ 1,817 per ounce at the start of the Asian session.
The higher jump in 10-year US bond yields continued to push the greenback against the dollar against most major currencies. The stronger US dollar makes gold precious metals more expensive for other currency holders.
Over the weekend, President-elect Joe Biden has promised to implement a trillion-dollar stimulus to combat the pandemic effects of the economy.
This in turn increases investor confidence in stronger US economic growth.
However, the momentum of the strengthening of the US dollar may not be permanent as the implementation of larger stimulus measures also means that the country's debt will also increase, which will encourage investors to return to gold to protect themselves from the risk of inflation.
