Gold prices weaken slightly as Trump says North Korea talks may continue

NEW YORK/LONDON — Gold prices dropped slightly on Friday, but still remained above $1,300 per ounce as investors digested news of US President Donald Trump saying a meeting with North Korea’s leader could still go ahead.

Spot gold lost 0.10% at $1,303.34 per ounce (oz) by 1:38 p.m. EDT (1738 GMT), yet was on track for a weekly gain of 0.90%, its biggest since March. Spot gold earlier hit a 10-day high at $1,307.80/oz.

US gold futures for June delivery settled down 70 cents, or 0.10%, at $1,303.70 per ounce.

“Gold has managed to hold onto a significant chunk of its gains made yesterday despite the US trading conciliatory messages with North Korea again, something which has boosted the global stock markets and the US dollar,” said Forex. com analyst Fawad Razaqzada, while Julius Baer analyst Carsten Menke said the uncertainty over the US- North Korea meeting was likely to have only a temporary impact on gold, traditionally used as a safe place to park assets in times of instability.

“Based on this pattern and on gold’s very tight relationship with the US dollar, this uplift in price should be temporary and we should fall back below $1,300 an ounce,” he said.

Dollar- priced gold tends to increase when the greenback weakens because this makes it cheaper for buyers with other currencies.

The dollar reached a new 2018 high, helped by North Korea saying it was open to resolving issues with the US.

On Thursday, gold rallied above $1,300 an ounce after Mr. Trump said the meeting with North Korea was off.

Global shares also steadied, reducing the clamor for gold as a safer asset.

Heading into a long holiday weekend in the US, Dillon Gage’s Walter Pehowich said trading activity was virtually mute.

“I expect gold to stay between $1,300 and $1,308 for the weekend.”

Investors focused on the psychologically important $ 1,300 level, MKS trader Samuel Laughlin said, “as a pivot point for nearterm price action.”

Gold had been trading in a range between about $1,310 and $ 1,360 since hitting a one- anda- half year high in January but was pushed lower this month by a strengthening dollar and rising US bond yields, which reduce the appeal of non-yielding gold.

Meanwhile, silver lost 0.60% at $16.53 per ounce, headed for a weekly gain of 0.40%. It earlier hit $16.70, a one-and-a-half-week high. Platinum dropped 1.4% at $896 per ounce, but up 1.9% on the week, while palladium declined 0.30% at $977.15, set for a 1.7% weekly gain. —