Gold Retreats On Stronger Stocks As Risk Appetite Revives

Gold futures retreated on Wednesday as demand for riskier assets such as stocks revived, in part on better-than-expected Chinese economic data. U.S. stocks extended gains for a second day with major stock indexes up about 1%. Chinese exports rose for the first time in nine months while imports declined at a slower paced than projected, helping to ease persistent worries about a prolonged slowdown in China. The dollar's strength also weighed on the precious metal which is denominated in the U.S. currency. June gold shed $12.60, or 1%, to settle at $1,248.30 an ounce. The Fed's Beige Book, released after the metal settled, said wages have started to rise while the steady decline in oil production may be coming to an end.