Gold futures slide 1% to $1,277/oz., hitting YTD lows, as rising confidence in the world economy pushes investors away from typical safe-haven assets.
Analysts say faith that the U.S. and China will reach an agreement to end their tariff fight and the Fed's signals that it likely will leave interest rates unchanged this year have shifted investor sentiment, driving a rally in stocks and commodities such as oil and copper.
“There are a lot of competing assets for the capital that’s in the market right now,” says Peter Hug, director of metal sales at Kitco Metals. In the gold market, “it’s almost like watching paint dry.”
"We’re likely to see some more pressure on gold over the next couple of days, especially with earnings coming out that’s going to keep the equity market stronger," says Bob Haberkorn at RJO Futures, adding bullion also is weighed by strong Chinese economic data and last week's better than expected U.S. jobs report.
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