Gold prices ease on renewed US-N.Korea summit hopes

BENGALURU: Gold prices eased on Monday, following their biggest weekly gain in six weeks, as US President Donald Trump revived hopes of his summit with North Korean leader Kim Jong-un, after cancelling the meeting last week.


Spot gold was down 0.2 per cent at $ 1,298.74 per ounce at 0044 GMT, while US gold futures for June delivery fell 0.4 per cent to $ 1,298.30 per ounce.

The metal gained about 0.7 per cent last week, registering its biggest weekly gain since the week ending April 13.

Donald Trump said on Sunday that a US team had arrived in North Korea to prepare for a proposed summit between him and Kim Jong Un, which Trump pulled out of last week before reconsidering.

The euro crawled off a 6.5-month low against the dollar on Monday, catching its breath after last week’s steep decline, although broader concerns about political turmoil in Italy limited the currency’s recovery.

Italy’s president is expected to ask a former International Monetary Fund official on Monday to head a stopgap government amid the political and constitutional turmoil, with early elections looking inevitable.

US Commerce Secretary Wilbur Ross will visit China early next month for another round of talks amid ongoing trade frictions between the world’s two largest economies.

SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.42 per cent to 848.50 tonnes on Friday from 852.04 tonnes on Thursday.

Hedge funds and money managers cut their net long position in COMEX gold contracts to the smallest in 10 months in the week to May 22, US Commodity Futures Trading Commission (CFTC) data showed on Friday.

Physical gold demand remained subdued last week in most Asian hubs as prices rebounded following an initial dip, while dealers in India offered bigger discounts to spur buying amid high domestic prices.

Trading volumes are expected to be low as the New York and London markets are closed for public holidays on Monday.