Gold prices fell 0.7 percent on Tuesday, as investors shrugged off heightened political risk following a deadly suicide attack in Britain. A suicide bomber killed 22 people, including children, in an attack on American singer Ariana Grande’s concert in Manchester. Countries from the United States to Japan and Singapore are considering tightening security ahead of major theatre and sports events following the suicide bomb attack in Britain that killed at least 22 people. Such events are expected to spur investors to buy in safe-haven assets like gold, though market remained quiet after the bombing. The U.S. dollar rebounded from 6-1/2-month lows, weighing on gold.
On technical front, the dollar can hardly reverse the losing momentum. Gold is taking a breather once again, struggling to make it out of this $1,245-$1,265 range.
Silver tracked gold, down 0.4 percent at $17.05 an ounce. The white metal can hardly buck the trend due to strong guidance from gold. But it may underperform gold once market morale is reversed.
On technical front, silver held around the 30-day moving average of $17, and is expected to test high again if gold could retain its steam.

 
Dealing Room, ICBC Beijing Branch
Cheng Yu

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