By Rachel Koning Beals
Gold futures traded lower Tuesday as haven investments lost appeal once post-Brexit volatility in riskier markets eased, but the precious metal remains near its highest price in some two years.
Gold had gained in back-to-back sessions in the wake of the U.K.’s historic and market-jarring decision to exit from the European Union. That vote, late last week, sent global stocks and select currencies tumbling, sending investors into the relatively lower-risk nature of gold, but stocks are called higher Tuesday.
“Markets calmed today, with sterling and U.K. stocks finding a footing, and risk-off positioning unwinding some ... as the Bank of England injected 3.1 billion pounds into U.K. banks, South Korea announced a $17 billion stimulus package, Chinese president Li said that he won’t allow a roller coaster ride in Chinese capital markets and other leaders attempted to assuage investor concerns,” said Ronald Simpson, currency analyst with Action Economics.