Gold gave up on its previous gains on Tuesday morning in Asia after the U.S. shares rally overnight. The safe-haven asset in its true fashion, went down after the S&P 500 reverted its losses and turned positive for the year.
As at 12pm ET (5am GMT), gold futures were down by 0.22% to $1,701.35. Gold futures have been down lately, as global investors lose interest in various safe-haven assets and instead commence investments in riskier assets. One such asset that has witnessed even more interest is the equity market and this has been further enhanced with the U.S dollar gaining strength in recent days.
With the newly recorded positives of the S&P 500, investors had switched interest from the metal as their confidence was enhanced with the overall recovery of the economy. Consequently, their risk appetites also increased.
Stephen Innes, chief market strategist at financial services firm AxiCorp, in a note, had explained that, “The yellow metal is on a reasonably steady downtrend, most likely on the back of the great run in equity markets over the past few weeks, which could see fast money continue to sell on rallies.”