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.”
Source: Reuters
