Gold pulls back from a 2-week high as global stocks rally

Gold prices fell on Wednesday, extending losses for the second straight day, to pullback from a 2-week high on profit-taking and weak safe-haven demand, as most global stocks rallied today.

Gold fell 0.8% to $1,713.02 an ounce, after it lost 0.75% yesterday, posting its first loss in 5 days, on profit-taking a 2-week high of $1,745.09.

Most global stock markets continued to rally, as investors sentiment improved thanks to the continued major economies reopening measures and relaxing the coronavirus-lockdown, and hopes for a quick global economic recovery from the coronavirus impact, in addition to  strong Chinese services data. 

Data showed that the Chinese services sector grew 55 points in May, beating forecasts of 47.4 points, and higher than 44.4 points in April.

According to the data, the Chinese service sector returned to a growth path in May, after 3 months of stagnation due to the coronavirus lockdown, which raised hopes about the recovery of the world's second largest economy.

The market sentiment also drew support from the continued efforts made by global central banks to expand unprecedented financial and monetary stimulus programs to ease the coronavirus pandemic economic impact.

Gold stocks at the SPDR ETF rose 0.88 metric tonnes yesterday, with the total at the highest level since May 2013 at 1,129.28 metric tonnes.