• Gold prices eased slightly on Tuesday, dropping for a second day, as investor sentiment remains skewed toward riskier assets in the wake of the French election results on Sunday, though geopolitical concerns are still supporting safe-haven demand.
Spot gold <XAU=> was down 0.1 percent at $1,273.50 per ounce by 0338 GMT.
• Analysts said safe-haven demand for gold remained strong amid the tensions over North Korea's nuclear and missile programme as well as a potential government shutdown in the United States this week.
• "A weaker dollar, Korean tensions and the uncertainty with regard to the U.S. debt ceiling negotiations all have the potential to boost gold higher over the short-term," INTL FCStone analyst Edward Meir said.
• On the technical front, gold, however, does not have a rosy picture with the potential of a decent downside correction if and when uncertainty fades, said Jeffrey Halley, senior market analyst at OANDA.
"Gold has resistance at $1,290 and then $1,296, having failed in this area numerous times last week. Below, support lies at $1,265.50 and then the 200-day average at $1,254.80. A daily close below $1,240 would signal a much larger correction could be on the way."
• Goldman Sachs, in a note on Monday, said it continues to expect gold to come under pressure in the near term on a potential rally in real interest rates following the expected unveiling of President Trump's tax policies on Wednesday or later
• Silver <XAG=> was up 0.1 percent at $17.92 an ounce, after touching a one-month low of $17.65 on Monday.
Reference: Reuters
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