Gold futures continued their selloff to finish the trading week as the yellow metal logged its sharpest weekly loss in about two months. The yellow metal has become less attractive since three coronavirus vaccines were announced, adding to greater investor confidence in the broader financial markets. Despite inflation concerns, investors appear to be ending the year on a euphoric high, diving into equitie and the industrial metals.

February gold futures tumbled $20.50, or 1.13%, to $1,790.70 per oucne at 17:51 GMT on Friday on the COMEX division of the New York Mercantile Exchange. Gold posted a weekly slide of 4.22%, paring its year-to-date rally to below 18%.

Silver, the sister commodity to gold, is also plummeting to end the holiday-shortened trading week. March silver futures fell $0.671, or 2.86%, to $22.775 an ounce. The white metal suffered a weekly decline of 6%, but it is still up more than 27% so far this year.

Is gold facing a correction or is it heading toward a bear market? The precious metal is trading below the 200-day moving average of $1,802.11. But gold bears think that contracts could slide to $1,700.00.

The metal asset class has failed to take advantage of a slumping greenback. The US Dollar Index, which gauges the greenback against a basket of currencies, slid 0.22% to 91.80, from an opening of 92.02. The index is poised for a weekly drop of 0.65%, adding to its year-to-date loss of 4.8%. A lower buck is typically good for dollar-denominated commodities because it makes it cheaper for foreign investors to purchase.

Overall, there is greater optimism for the economic recovery now that three mostly effective COVID-19 vaccines are being produced from Pfizer, Moderna, and AstraZeneca – with many more to come from other companies. However, with ultra-low interest rates and the likelihood of more fiscal and monetary stimulus, the inflationary effects would support the metals.

A Joe Biden presidency has also affected precious metals because he is expected to take a calmer approach to trade policy with a nation like China. This has been reflected in the broader stock market.

In other metal markets, January copper futures picked up $0.0945, or 2.86%, to $3.404 per pound. January platinum futures edged up $1.00, or 0.1%, to $970.80 an ounce. January palladium futures settled $76.00, or 3.21%, higher to $2,440.70 per ounce.