FXStreet reports that in the view of Carsten Fritsch, Precious Metals Analyst at Commerzbank, outflows in the gold-backed exchange-traded funds (ETFs) in November was the main driver behind the metal’s fall.

“The gold market saw continued selling pressure last month as investor sentiment was boosted by news of three potential vaccines for the COVID-19 virus.”

“Gold-backed exchange-traded funds (ETFs) have been the key driver behind gold's disappointing price action.”

"News from India offers a glimmer of hope. Gold demand there apparently picked up noticeably last week on the back of lower prices. A revival of physical demand in Asia would make an important contribution to stabilizing the gold price. And in turn, it would need to stabilize to restore the badly-shaken confidence of ETF investors in gold."