Gold fell slightly in Asia,shrugging off the latest missile test by North Korea.

profitaddaweb.com - Gold fell slightly in Asia on Monday, shrugging off the latest missile test by North Korea and drifting in trade with China, the U.S. and The U.K. markets shut for holidays.

Gold futures for June delivery on the Comex division of the New York Mercantile Exchange eased 0.13% to $1,266.42 a troy ounce.

Last week, gold rose to a nearly one-month high Friday, shrugging off a rise in the dollar to a four-day high, following an upward revision to U.S. economic growth and expectations the Federal Reserve would hike its benchmark rate in June.

The U.S. economy grew faster than initially reported during the first three months of 2017, easing concerns about a potential slowdown in the U.S. economy.

Gross domestic product grew at an annualized rate of 1.2% in the first three months of 2017, according to the Bureau of Economic Analysis’s, well above the previous reading of 0.7%, which was the slowest period of economic growth since 2014.

The dollar leaped to a four-day high, and pressured commodity prices across the broad, as expectations for a June rate hike rose to its highest level this week .

According to Fed rate monitor tool more than 80% of traders expect the Federal Reserve to hike its benchmark rate in June, compared to below 70% of traders in the previous week.

Gold is sensitive to moves higher in both U.S. rates and the dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.

Investor sentiment skewed toward safe-haven assets after a suspected terrorist attack

profitaddaweb.com - Gold prices held near their strongest level in around three weeks in European trade on Tuesday, as investor sentiment skewed toward safe-haven assets after a suspected terrorist attack at a concert in Britain's city of Manchester.

gold futures firmed at $1,261.43 a troy ounce by 3:10AM ET (07:10GMT). Meanwhile,spot gold was at $1,261.60. Prices of the yellow metal rose to an overnight peak of $1,263.80, just shy of a three-week high of $1,265.00.

Police said an explosion at the end of a concert by U.S. singer Ariana Grande in the English city of Manchester on Monday killed at least 19 people and injured more than 50.

Two U.S. officials said a suicide bomber was suspected, while Prime Minister Theresa May said the incident was being treated as a terrorist attack.

If confirmed, it would be the deadliest militant assault in Britain since four British Muslims killed 52 people in suicide bombings on London's transport system in July 2005.

Gold has been well-supported in recent sessions as political uncertainty surrounding the Trump administration pressured the dollar lower.

Investor sentiment has been hit by fears that the U.S. political system could become engulfed by crisis, preventing lawmakers from pushing through tax or spending reforms.

The dollar index, which tracks the greenback against a basket of six major rivals, was at 96.83 in London morning trade. It fell to a six-month low of 96.70 on Monday, having given up all the gains it had made following the election in November.

Also on the Comex,silver futures shed 7.1 cents, or about 0.4%, to $17.12 a troy ounce, after hitting its highest since May 1 at $17.21 a day earlier.

Elsewhere in metals trading, Copper futures lost 1.8 cents to $2.577 a pound.