Investing.com - Gold prices were under heavy selling pressure in North American trade on Tuesday, as strong gains in global equity markets dampened demand for the yellow metal.
Global stocks rallied again on Tuesday, as prospects for more monetary stimulus from the Bank of Japan combined with easing political tensions in Britain boosted appetite for riskier assets.
Asian shares rose to a 2-1/2-month peak, with Japan's Nikkei jumping 2.5% as investors bet the country's government may inject $100 billion in fiscal spending to boost the economy.
Meanwhile, European stocks were sharply higher, with Germany's DAX climbing nearly 2%, as political uncertainty in the U.K. eased with the imminent appointment of Home Secretary Theresa May as U.K. prime minister.
Elsewhere, U.S. stock markets opened higher, with the S&P 500 and Dow hitting fresh intraday record highs, while the Nasdaq traded at its strongest level of the year so far.
Gold for August delivery on the Comex division of the New York Mercantile Exchange fell by as much as 1.1% to hit a session low of $1,342.50 a troy ounce. It last stood at $1,343.00 by 13:39GMT, or 9:39AM ET, down $13.60, or 1%. A day earlier, gold shed $1.80, or 0.13%.
Gold surged to $1,377.50 last week, a level not seen since March 2014, as uncertainty surrounding global growth in wake of Britain’s vote to exit the European Union sent investors flooding into safe haven assets.
Prices of the yellow metal are up nearly 30% so far this year amid fading expectations of a Federal Reserve rate hike and as expectations mounted that central banks around the world will step up monetary stimulus to counteract the negative economic shock from the Brexit vote.
Also on the Comex, silver futures for September delivery inched up 3.3 cents, or 0.16%, to trade at $20.34 a troy ounce during morning hours in New York, while copper futures advanced 3.4 cent, or 1.61%, to $2.182 a pound.