Gold slumped to a ten-week low Tuesday with the spot price falling to $1,326.90 an ounce on increasing investor risk-appetite. With the appeal of safe-harbor investments waning, demand for gold is expected to decline further.
“Risk aversion is definitely much lower at the moment than it was a few weeks ago,” said Commerzbank analyst Daniel Briesemann. “It is becoming increasingly clear that especially as the debt crisis in the euro zone periphery calms, investors feel less of a need for safety,” he said, adding: “That’s a major reason for letting gold fall as much as it has over the last couple of days.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.