Gold prices are declining early on Monday and are all set to experience their worst monthly performance in four years during November, weighed down by optimism surrounding possible vaccines against COVID-19. At the time of writing, GOLD is trading at a little above $1,769.

So far this month, gold prices have weakened by around 5.9% ever since three pharmaceutical companies announced progress in developing highly effective vaccines that can potentially contain the coronavirus pandemic. Optimistic news about possibly containing the pandemic have dented the safe haven appeal of gold as markets cheer the possibility of recovery in the global economy soon.

The risk sentiment in the markets received another boost earlier today after China’s official PMI reading showed that its manufacturing sector expanded at the fastest pace in over three years during November. The rebound in the sector was driven by strong external demand, which could help the sector return to its pre-pandemic levels of activity soon.

Later this week, gold prices could see some moves on the congressional testimony of Fed Chair Jerome Powell. Traders will look out for any clues that hint at more monetary easing by the Fed to combat the economic damage caused by the pandemic in the US.