Gold prices slip but hold above $1,300

BENGALURU: Gold prices eased on Friday amid a firmer dollar, after breaking above $ 1,300 in the previous session as US President Donald Trump’s decision to call off a meeting with North Korean leader Kim Jong Un triggered safe-haven buying.

FUNDAMENTALS

Spot gold was down 0.2 per cent at $ 1,302 per ounce at 0100 GMT, after gaining nearly 1 per cent in the previous session in its biggest one-day per centage rise since April 11.

US gold futures for June delivery eased 0.2 per cent to $ 1,301.90 per ounce.

The dollar index , which measures the greenback against a basket of six major currencies, was up 0.1 per cent at 93.846. It was up 0.2 per cent versus the yen after hitting a more than two-week low in the previous session.

Trump on Thursday called off a summit with North Korean leader Kim Jong Un scheduled for next month, citing Pyongyang’s “open hostility,” and warned that the US military was ready in the event of any reckless acts by North Korea.

President Trump’s threat to impose tariffs on auto imports drew strong criticism abroad and at home where US business groups and members of his own Republican Party warned of damage to the industry and raised the prospect of a global trade war that would harm American interests.

Nations that remain in the Iran nuclear deal meet on Friday for the first time since US President Donald Trump left the pact, but diplomats see limited scope to salvage it after Washington vowed to be tougher than ever on Tehran.

Euro zone growth could slow further and uncertainty is on the rise but the bloc’s expansion remains solid and broad-based, European Central Bank policymakers concluded in April, the minutes of the meeting showed on Thursday.

The US Federal Reserve and Bank of England on Thursday urged global financial markets to step up efforts to shift from the scandal-plagued Libor reference rate to alternative interest rate benchmarks.

Polyus , Russia’s largest gold producer, said on Thursday 2018 production was likely to be at the upper end of its forecast range of 2.375-2.425 million troy ounces.