Gold edged higher on Wednesday after falling more than 1 percent in the previous session but gains were capped as Greece's plan to end a stand-off with creditors sharpened appetite for risky assets. Spot gold was up 0.3 percent at $1,263.95 an ounce by 0716 GMT, after falling 1.2 percent on Tuesday, which marked gold's fourth drop in five sessions.
"Appetite for risk now appears higher and that is spurring some rotation of funds away from the safe havens in the yen and gold to riskier assets such as equities and the euro," Phillip Futures investment analyst Howie Lee said in a note. "Barring any downside black swan events, it is now increasingly unlikely that we could see gold racing for $1,300 again in the near future." Spot gold has largely fallen since hitting a five-month peak of $1,306.20 on January 22, paring the metal's year-to-date gain to less than 7 percent. US gold for April delivery rose 0.3 percent to $1,264.50 an ounce.
Comments
Comments are closed.