Gold prices fell to a three-week low on Tuesday, lingering around $1,255.90 an ounce. as demand for riskier assets drove stocks higher and the dollar hit a six-week peak against the yen. Spot gold was down 0.9 percent at $1,253.66 an ounce in a narrow range, the lowest since April 11. Asian stocks rose to a two-year high on Tuesday, dampening bullion’s safe-haven appeal. North Korea will dominate gold prices in near term. U.S. President Donald Trump on Monday opened the door to meeting North Korea's Kim Jong Un, saying he would be honoured to meet the young leader under the right circumstances, even as Pyongyang suggested it will continue its nuclear weapons tests. Any progress in North Korea’s nuclear test would escalate geopolitical tensions in Northeast Asia, boosting demand for safe-haven gold and buoying bullion prices.
On technical front, gold held around Monday’’s closing prices and closed at $1,256.35 an ounce on Tuesday. Despite that the MACD index showed strong bearish tone, gold prices failed to breach the 200-day moving average of $1,252.58 with strong support at around $1,250. A correction is expected if gold did not cross below this level.
Silver was up 0.4 percent at $16.91 an ounce, after falling 2 percent to $16.78, its lowest since March 10. It failed to cross over the key mark of $17 despite of a mild rebound during the session. On technical front, the MACD index still showed a bearish tone, with heavy downward momentum. Resistance can be met at $16.70.

 
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