Gold Holds Near Two-Week Low As Risk Appetite Rises On US Data

Gold has consolidated near the low of the past two weeks following on from its Brexit rally.

Having increased by 25% since the beginning of the year, the pause in its rally comes as Barnabas Gan, an economist at Singapore-based Oversea-Chinese Banking Corp observes that “Market risk-on sentiment seems to have gone back” on the table.

Recent positive economic data out of the US including positive retails sales, consumer prices and employment statistics have lured investors back in to the equity markets and trimmed the rally in gold. However, this recent positive economic news needs to be viewed against the backdrop of it being an election year in the US and the desire of the White House to create a connection between positive economic sentiment and the democratic administration.