Gold prices are dropping and could go all the way to $1,660 levels

London: Gold slid below $1,800 an ounce to the lowest since July as positive vaccine news and a clearer political picture continued to undermine the safe haven. Bullion fell steeply in a repeat of losses, when news of AstraZeneca Plc's effective vaccine and positive US economic data hit demand.

Gold is now at $1,771 an ounce. The Dubai Gold Price is at Dh203.5 a gram.

The decline accelerated after gold moved below its 200-day moving average. Prices are heading for a third weekly drop as investors swap into risk assets looking to profit from the eventual economic recovery.

Even gold funds are hit

Money continued to exit gold exchange-traded funds, which are now headed for their first monthly outflow this year. The funds have been a crucial support pillar for bullion in 2020, so their current erosion has significant implications for the price.

"Gold has moved into the next 'down-leg' of its correction phase," according to United Overseas Bank Ltd. market strategist Quek Ser Leang. A break of the support zone of between $1,760 and $1,780 would open up the way for further weakness toward the $1,600s, he said.