The dollar being close to its 6 month lows slightly pulled gold lower on Tuesday and global traders are currently securing profits after gaining for two weeks. The bullion shrugs off rising political tensions following the Manchester bombing.
U.S. gold futures edged down $5.90 and trades at $1,255.50 per ounce, while spot gold was marginally lower by 0.48 percent to finish at $1,255.40 an ounce, it added as much as 3.6 percent since May 9. The yellow metal has been aided by the political concerns on U.S. President Donald Trump and the sluggish economic data in the country. The said uncertainties also influenced the dollar which fell more than 7 percent this 2017.
The European currency is also on its way to a six-month high versus the U.S. dollar on Tuesday. Yet, fund futures of the Federal Reserves suggested a 75 percent chance of an interest rate hike next month. This discourages investors from pushing gold prices higher until words from the Fed on a possible curve for rate hikes this 2017.
Saxo Bank’s head of commodity strategy Ole Hanson says the bullion is catching its breath once again as it struggles to make it out of the $1,245-$1,265 range. Hanson added that as of this stage, the market is not yet ready to break the range until further supervision from the Federal Open Market Committee (FOMC).
Meanwhile in other precious metals; platinum inched higher by 0.03 percent at $946.30 per ounce, palladium rose by 0.06 percent at $771 per ounce, while spot silver added 0.11 percent at $17.14 per ounce.