• Gold prices have fallen, as the US dollar rebounded from 6-1/2-month lows and investors shrugged off heightened political risk following a deadly suicide attack in Britain.
• "Gold is taking a breather once again; it's struggling to make it out of this $US1,245-$US1,265 range," said Ole Hansen, head of commodities strategy at Saxo Bank.
• "Unless we get other developing (political risk) stories, the market is not prepared to break this range until further guidance from the Federal Open Market Committee," he said, referring to the US central bank's policy-setting committee.
• Spot gold was about 0.7 per cent lower at $US1,250.93 an ounce by 3:27 pm Tuesday EDT (0527 Wednesday AEST), having gained about 3 per cent since May 9 when it tumbled to near a two-month low. US gold futures settled 0.5 per cent lower at $US1,255.50 an ounce.
• "With nearly two-thirds of Q2 2017 out of the way, QTD gold prices have averaged within 0.2 per cent of our Q2 2017 price forecast ($US1257/oz versus $US1259/oz)," RBC Capital Markets said in a note.
• "While prices may trade away trough the balance of the quarter, we remain confident in a slight upward skew in prices on average (driven by unanticipated risks)."
• Still, Fed fund futures were up, showing a 75 per cent chance of an interest rate increase next month, which deterred investors from pushing gold higher.
• Silver was down 0.4 per cent at $US17.05 an ounce, having touched a three-week peak of $US17.30 earlier.
Reference: Business News
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