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Gold up following Manchester Arena terror attack

A horrific terrorist incident in Manchester occurred last night, in which over 20 people died. The perpetrator initiated an explosion as people were leaving the Manchester Arena after a pop concert. With the incident taking place at 22.35 on Monday in the UK, most of any market reaction has been confined to the Asian session on Tuesday.

Reuters reported spot gold up 0.1% at $1,261.62 per ounce by 0100 GMT, whilst Mining.com reported that gold for June tacked on $6.40, or 0.5%, to trade at $1,260 an ounce on its largest weekly gain since mid-April. Declines in the U.S. dollar index set prices up for their highest finish in three weeks.

The dollars weakness continues over Donald Trump’s ongoing scandal with Russia and James Comey, and his debatable ability to push through fiscal stimulus.

By comparison, on the continent, the Euro reached $1.1255, climbing to a six-month high after German Chancellor Angela Merkel said European Central Bank policies were to blame for making the single currency “too weak”, according to Marketwatch.

Despite a lowering of rate hike expectations by analysts, Dallas Fed President Robert Kaplan said yesterday that the US central bank should keep raising rates and trimming its balance sheet, as the progress towards stable prices and full employment was good. Reuters reported that the Chicago Fed said yesterday the economic outlook in April was the best since late 2014.

The SPDR Gold Trust, the world’s largest gold-backed ETF, saw its holdings rise 0.21% to 852.48 tonnes yesterday.

 

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-up-following-manchester-arena-terror-attack-13164/

Posted by on May 23 2017. Filed under Gold News, Mining. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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