By Stephanie Yang
Gold prices fell to a two-week low on Thursday as growing market risk appetite prompted investors to turn away from safe havens, including the precious metal.
Gold for August delivery was recently down 1.3% at $1,325.60 a troy ounce on the Comex division of the New York Mercantile Exchange, and traded at its lowest level since June 30 during the session.
Demand for gold has abated as stock markets around the world have rallied. The Dow Jones Industrial Average and the S&P 500 continued to climb on Thursday after breaking to record highs this week.
Fears over the consequences of Britain’s exit from the European Union have also subsided, said Bill O’Neill, a broker at LOGIC Advisors.
“The continued run of equity markets is making gold a less desirable flight-to-safety vehicle, because there is no flight to safety right now,” Mr. O’Neill said.
The Bank of England’s decision to leave interest rates unchanged put pressure on gold prices Thursday. The majority of the market expected central bankers to cut interest rates to accommodate an economic slowdown following Brexit.