Gold futures have headed firmly lower, wrapping up a troubling month for the asset, which also puts it on track to log its lowest settlement in almost half a year. According to FactSet data, gold futures are off by nearly 6% for the month, with prices trading about 2% below their long-term, 200-day moving average that stands at $1,806.15.

The recent developments have been attributed to reinvigorated enthusiasm for assets perceived as risky, like stocks, with the apparent progress on vaccinesemboldening bullish equity investors and ultimately chasing away people from buying gold.

“Clearly the gold and silver trade continue to ‘look through’ the unrelenting flare of infections in the U.S., as prices continue to fall sharply off lofty vaccine expectations,” analysts at Zaner Metals wrote in a daily note. “Furthermore, gold and silver prices have continued to fall sharply despite the assistance of a fresh downside breakout in the dollar.” 

Dollar-pegged precious assets have been hit hard following the positive vaccine news, even as the buck continued a trend of weakness.

“Gold has fallen another 1% even as the US dollar has also extended its declines” and the equity markets have started the new week with losses, wrote FawadRazaqzada, market analyst at ThinkMarkets.

However, the analyst is of the opinion that gold’s fall may be capped at around this point as the dollar weakens.

“If the weakness for the dollar persists, this should prevent gold prices [from falling] further,” he said. He also notedthat government bond yields have seen tepid moves. Consequently,lower yields can buoy gold buying as the commodity does not offer a coupon.

“What’s more, government bond yields have stopped going higher as investors realize the road to economic recovery is going to be a long bumpy one, despite optimism surrounding vaccines and hopefully the potential return to normal life,” Razaqzada said.

Copper seems to have developed a thick back to the developments as it has continued to surge high.

“The copper market continues to be the ‘odd man out’ in metals and most commodity markets, with prices surging higher despite weakness in equities, signs of renewed U.S./Chinese tensions and escalating Chinese/Australian tensions,” said analysts at Zaner Metals.

“However, the copper market continues to anticipate strong demand from China and the maintenance of generally tight global supply,” they said.

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