Gold inter-markets: revival in risk-appetite continues to weigh on the precious metal

The yellow metal was trading mostly unchanged from Monday's closing level, around $1330 as revived risk appetite, after failed coup attempt in Turkey, continues to drive investors away from perceived safe-haven assets - like Gold. The precious metal is witnessing a subdued trading action on Tuesday and held on to its overnight losses. 

Persistent risk-on sentiment is supported by the ongoing recovery trend in the USD/JPY pair and US long-term (30-years) treasury yields. Moreover, post-Brexit slide in the Volatility Index (VIX), which boosted demand for riskier assets - like equities, as depicted by the ongoing bullish momentum in the broader US equity index (S&P 500), is further reinforcing the presumption of improving investor sentiment. 

Adding to this, the incoming US economic data pointed to the inherent strength of the US economic recovery, which is further weighing on traditional safe-haven assets - like treasuries, Yen and Gold. However, a sudden rise in VIX in the past two days has limited further downslide for the commodity, at-least for the time-being. 

Increasing prospects of additional monetary easing by major central banks, namely - BOE, RBA and RBNZ, might continue to buoy investor sentiment and force the yellow metal to extend its corrective move in the near-term. In the meantime, investors will keep a close eye on this week's ECB meeting and subsequent press-conference on Thursday, which could possibly shaken investor confidence and provide some temporary respite for the metal.