Gold slumps on rising risk appetite
Gold slumped as the moody atmosphere in equity markets continued to weigh on safe-haven assets.
Spot gold is trading at 1967 dollars per ounce. Gram gold, on the other hand, finds buyers at 1210 TL in the markets.
Equities in Europe and Asia rose on Wednesday, while the recovery in risk sentiment continues to grow after the takeover of Credit Suisse Group and the bankruptcy of three US banks, which helped push the precious metal above $2,000.
US officials on Tuesday outlined the biggest overhaul in recent years, showing that they will follow the banking industry closely.
Problems in banking in recent weeks have led to a decrease in expectations that the Fed will maintain its aggressive monetary policy stance.
This helped gold, which is inversely correlated with higher interest rates, to maintain its rise, which it displayed earlier this month. Swap investors expect the Fed to raise rates by 50 basis points for the remainder of the year.
Gold had risen above $2,000 due to the safe haven demand created by the banking crisis in the past few weeks. After the measures taken by the US and Swiss authorities in the ongoing process, the precious metal lost some of its attractiveness and gave back some of its gains since the beginning of March.
