Gold Retreats On Stronger Stocks As Risk Appetite Revives

By Sue ChangMarketWatch Pulse

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.

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