Gold eased on Tuesday, losing its shine as an alternative investment after stock markets rallied on hopes for a steady U.S. recovery, and as holdings on bullion exchange-traded funds slipped to their lowest in more than three years.
Although physical buying has helped gold rebound from a 2-year low hit in April, daily outflows on ETFs reflect investors’ sagging interest in the metal, which has fallen more than 12 percent in 2013 after rising for each of the past 12 years.
Gold eased $3.70 an ounce to $1,465.19 by 0451 GMT. It rose to a near three-week high of $1,487.80 on Friday on safe-haven buying spurred by a cut in interest rates by the European Central Bank and the Fed’s decision to stick to its stimulus program.
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