Investing.com – Gold prices fell sharply during North American morning trade on Wednesday, moving further away from this week’s two-month high as the metal’s safe-haven appeal was dampened amid a rally in global stock markets.
Gold for February delivery on the Comex division of the New York Mercantile Exchange fell $9.75, or around 0.8%, to $1,201.15 a troy ounce by 9:10AM ET (14:10GMT), after declining $4.80, or 0.4%, a day earlier.
Prices of the yellow metal jumped to a two-month peak of $1,219.40 on Monday.
Global stocks were in full rally-mode on Wednesday as investors snapped up equities amid an improved corporate earnings outlook, reducing demand for safe-haven assets such as gold and government bonds.
Investors are also turning more optimistic as President Donald Trump begins to offer more details of his policies.
Trump signed two executive orders on Tuesday to move forward with construction of the controversial Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favor of expanding energy infrastructure.
He also signed orders rolling back some regulation and environmental rules, in order to expedite approval of infrastructure projects.
But concerns over his protectionist stance remain after Trump signed to formally withdraw the U.S. from the Trans-Pacific Partnership trade deal and vowed to renegotiate the North American Free Trade Agreement (NAFTA) with leaders of Canada and Mexico.
Additionally, a tweet by Trump Tuesday night signaled that he would sign an executive order on Wednesday to build a wall along the U.S.-Mexico border.
Market players will continue to focus on Trump for further details on his promises of tax reform, infrastructure spending and deregulation, as well as insight regarding policies on China and the domestic economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.2% at 100.11 in New York morning trade, not far from a seven-week low of 99.88 touched earlier this week.
Also on the Comex, silver futures for March delivery dropped 28.3 cents, or 1.7%, to $16.90 a troy ounce.
Elsewhere in metals trading, copper futures declined 0.8 cents, or about 0.3%, to $2.700 a pound.