Gold rises on US-N. Korea summit hopes

london — Gold prices fell on Monday for a second session after US President Donald Trump revived hopes that he would meet North Korean leader Kim Jong Un next month, lowering political tensions and demand for gold as a safe haven investment.

Trump last week pulled out of the June 12 summit, pushing gold above $1,300 an ounce, but then reversed his decision and said on Sunday that a US team had arrived in North Korea to prepare.

“It looks like there is some chance of a meeting between the US and North Korean leaders that would lower geopolitical risks and lessen the appeal of gold,” said National Australia Bank economist John Sharma. Gold is traditionally used as a safe place to store assets during times of uncertainty. Spot gold slipped by 0.3 per cent to $1,297.85 an ounce by 1019 GMT, while US gold futures for June delivery were down 0.5 per cent at $1,297.30.

Trading volumes were low with New York and London markets closed for public holidays.

Demand for gold as a safe-haven investment was also dented as Italy’s anti-establishment 5-Star and League parties abandoned plans to form a government hostile to the European single currency, triggering a rally in the euro.

Gold had been trading between about $1,310 and $1,360 since hitting a 1-1/2 year high in January, but it was pushed lower this month as the dollar strengthened to 2018 highs, making bullion more expensive for buyers using other currencies.