• Gold fell to a two-week low on Wednesday as investor appetite for riskier assets surged on renewed optimism over the U.S. economy and as political uncertainty in France receded, softening demand for safe-haven assets.
Spot gold was mostly unchanged at $1,263.55 at 0322 GMT. Prices touched a low of 1,260.90 earlier in the session, the lowest since April 11.
Bullion fell 0.9 percent on Tuesday, the biggest one-day decline since March 2.
• "Over the past two sessions, the momentum for gold to move ahead has actually faded away. We can see that risk appetite has increased after the easing situation in North Korea and French election results," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
"We have to move back to the original gravity of trading range of $1,200-$1,250."
U.S. President Donald Trump is proposing to slash the corporate income tax rate and offer multinational businesses a steep tax break on overseas profits brought into the United States, officials said late on Tuesday.
"For gold investors this may not be good news as the overall situation for the Trump administration is to ensure that there is sufficient capital inflows to asset markets including equities or dollar to finance fiscal deficit," said To.
"They have to balance it by keeping the original momentum by rising rates and use fiscal policies to attract more and more people to the U.S. stock markets, which will be negative for gold."
• Spot gold is expected to fall to $1,249 per ounce, as it has broken a support at $1,265, according to Reuters technical analyst Wang Tao.
• Spot silver edged up 0.4 percent to $17.61 an ounce, after falling 2 percent to a one-month low of $17.55 in the prior session.
Reference: Reuters
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