Gold prices tumbled on Tuesday as U.S. stocks drew bidders and after a prominent Wall Street firm offered a bearish outlook on the yellow metal. April gold fell $31.20, or 2.5%, to $1,208.20 an ounce.
Renewed appetite for U.S. stocks diminished some of the appeal of the precious metal, which has enjoyed one of its best runs over the past two weeks. Adding to gold’s decline was a report from Jeffrey Currie, Goldman Sachs’s global head of commodities, who said in his most recent research note that it is time to bet against the traditional haven as investor fears are overdone and don’t justify the recent rally.
Gold has gained almost 14% so far this year, compared with a decline in the S&P 500 index of 7.4%. The point loss for gold, based on a most-active contract, was the worst since March 6, 2015, according to Dow Jones data. On a percentage basis, it was the worst one-day fall in about three months.