Gold fell to a two-week low in Asia on Wednesday as investors opted for riskier assets such as equities on renewed optimism over the US 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.
US 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."
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.69 percent to 854.25 tonnes on Tuesday after 6 tonnes of inflows.
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