by Mark O’Byrne, Gold Core:

A summer evening on London Bridge and in Borough Market ended in terror on Saturday as attackers killed seven people and injured 48.

This is the second terrorist attack on British soil in less than two weeks and the the third this year. The attack was immediately labelled as a terrorist attack. In the hours that followed police arrested a further 12 people who were suspected of having links to the horrendous incident.

As was seen following the Manchester attack there has been a slight uptick in risk aversion over night. This morning the British pound slipped in Asian trading, both the Yen and gold have retained earlier gains. After dropping 0.7 percent last week the dollar index did edge higher earlier but remains close to 96.654, its lowest since the US election results.

On Friday gold hit its highest in over 6 weeks due to disappointing US jobs data. The Non-Farm Payrolls report showed the labour market was losing momentum. Unemployment is at a 16 year low of 4.3% but data showed below-forecast hiring and wage growth.

This morning gold has not improved on the 1.1% climb achieved on Friday. All eyes now look to the UK elections. Each of the European elections have seen some uptick in safe haven demand for gold but not at panic buying levels.

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