Gold fell to a two-week low on Wednesday as investors opted for riskier assets such as equities on renewed optimism over the U.S. economy and as political uncertainty in France receded, softening demand for safe-haven assets.
Spot gold was mostly unchanged at $1,263.53 at 0741 GMT. Earlier in the session, prices hit a low of 1,260.90, their lowest since April 11.
U.S. gold futures were down 0.2 percent at $1,264.90 an ounce.
Asian stocks extended gains for a fifth straight day on Wednesday after Wall Street hit new peaks.
“Over the past two sessions, the momentum for gold to move ahead has actually faded away. We can see that risk appetite has increased after the easing situation in North Korea and French election results,” said Mark To, head of research at Hong Kong’s Wing Fung Financial Group.
“We have to move back to the original gravity of trading range of $1,200-$1,250.”
U.S. President Donald Trump is proposing to slash the corporate income tax rate and offer multinational businesses a steep tax break on overseas profits brought into the United States, officials said late on Tuesday.
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