Gold was down on Tuesday morning in Asia, giving up its earlier gains in the aftermath of U.S. shares rallying overnight. The S&P 500 erased its losses and entered positive territory for the year.
Gold futures were down 0.22% to $1,701.35 by 12 PM ET (5 AM GMT). Investors retreated from the safe-haven yellow metal as the increased confidence in the economic recovery also increased risk appetite.
“The yellow metal is on a reasonably steady downtrend, most likely on the back of the great run in equity markets over the past few weeks, which could see fast money continue to sell on rallies,” Stephen Innes, chief market strategist at financial services firm AxiCorp, said in a note.
The focus will now shift to the U.S. Federal Reserve’s policy meeting, where investors will be looking for guidance on further stimulus measures.