Gold futures declined for the second straight day as easing concerns on Greek debt boosted global equities, reducing demand for alternative assets.
Greek Finance Minister Yanis Varoufakis proposed late on Monday to exchange existing debt for new bonds linked to economic growth. The MSCI All-Country World Index and the Standard & Poor™s 500 Index of U.S. stocks both rose as much as 1.3 percent.
Gold in January capped the biggest monthly gain in three years as concern that Greece would exit from the euro zone and signs of slowing economies outside the U.S. fueled demand for haven assets. The metal fell on Monday on concern that U.S. interest rates will increase soon.
Gold futures for April delivery fell 1.3 percent to settle at $1,260.30 an ounce at 1:51 p.m. on the Comex in New York. The metal dropped 0.2 percent on Monday.
Last year, gold posted a consecutive annual decline for the first time since 1998 as equities surged to a record and the U.S. economy gained traction.
Source : Bloomberg