Gold Hammered By Risk On Party In Equities Across The Globe
Gold fell for a second straight day on Tuesday as global equities rallied on easing political uncertainty in Britain and hopes for more economic stimulus, which in turn curbed demand for assets perceived as a safe haven.
Markets were also assessing whether the latest U.S. jobs data has boosted the prospects for an interest rate increase by the U.S. Federal Reserve.
Gold came under pressure after strong U.S. non-farm payrolls data on Friday boosted some expectations for a U.S. rate rise.
"Tensions in Britain are easing for now, as the country will soon have a new prime minister," ActivTrades chief analyst Carlo Alberto de Casa said.
"With the British pound gaining some ground, demand for gold and other safe havens is decreasing," he said, adding that the next support level for gold would be around $1,340.
Kitco analyst said “Gold prices shrank and silver finally followed big sister’s lead. Gold was down 1.65% and silver about 1.00%. This may be a good thing for gold bulls in the long run as it will provide a more comfortable spot to step on board the train back upward.”
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