The spot gold price rose during Asian trading hours on Wednesday as markets in Asia awoke to news of suicide bomber attacks killing more than 30 people at the Istanbul main international airport in Turkey.
Spot gold was last at $1,319.40-1,319.80 per ounce, up $6 from Tuesday’s close. Trading ranged at $1,312.75-1,321 so far.
Three suicide bombers suspected to be Islamic State (ISIS) militants had opened fired and blew themselves up at Ataturk airport on Tuesday, killing 36 people and wounding 150, newswires reported.
The attack on Europe’s third-busiest airport is the latest in a series of deadly Kurdish- or ISIS-linked suicide bombings in Turkey.
While risk sentiment had improved in global markets overnight boosting equities and commodities, uncertainty over Britain’s vote to leave the European Union is expected to support gold prices in the near-term.
“Despite the weakness in gold prices this week, we believe the uptrend will resume sooner rather than later because risk aversion is likely to persist in the coming days due to the inability of central banks to provide credible measures to calm the storm,” Boris Mikanikrezai, metals analyst at FastMarkets, said.
Should the upcoming US employment report disappoint for a second straight, gold could reach another fresh 2016 high, he added.
After the Brexit vote last week, investors are expected to refocus on US economic indicators – particularly the US jobs report due on July 8 – which could justify a rate hike by the US Federal Reserve later this year.
Majority of market participants believe the US is unlikely to lift interest rates this year after the Brexit vote last week threw global economic growth into uncertainty. A minority reckons the US may have to cut rates instead this year, according to the CME FedWatch Tool.
In US data released Tuesday, final GDP quarter-over-quarter in the first quarter came in at 1.1 percent gain, a touch above the 1.0 percent forecast. Final GDP price index over the same period edged up 0.4 percent, missing expectations of a 0.6 percent gain.
The S&P/CS composite-20 HPI for April increased 5.4 percent, a touch below the 5.5 percent economic consensus.
Lastly, CB consumer confidence for June bested expectations at 98, while Richmond manufacturing index in June stood at -7, missing the estimate of 2.
US data due later on Wednesday includes the core PCE price index, personal spending, personal income, pending home sales and crude oil inventories.
In currencies, the British pound is down 0.21 percent to $1.3328 against the US dollar so far on Wednesday. The US dollar index rose 0.01 percent to 96.05 recently.
In equities, the Dow Jones Industrial Average finished 1.57 percent higher at 17,409.72 on Tuesday. The Shanghai Composite is up 0.54 percent to 2,928.28 so far on Wednesday.
In other commodities, the Brent crude spot price rose 0.45 percent to $48.89 per barrel, while the Texas light sweet crude spot price decreased 0.12 percent to $48.25 so far on Wednesday.
In other precious metals, silver increased $0.25 to $17.997/18.038. Platinum jumped $11 to $985/990, and palladium gained $6 to $572/578 recently on Wednesday.
On the Shanghai Futures Exchange, gold for December delivery was unchanged at 284.45 yuan per gram and December silver was flat at 3,979 yuan per kilogram.
The post Gold rises after suicide bomber attacks at Istanbul airport appeared first on The Bullion Desk.
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Source: Bullion Desk News
