Gold rises as U.S.-North Korea denuclearization talks end abruptly

on Feb28
by | Comments Off on Gold rises as U.S.-North Korea denuclearization talks end abruptly |

Gold prices gained altitude Thursday partly propelled by softness in the dollar, with fresh political worries in the globe also providing some support for the precious commodity.

Gains for metals come as President Donald Trump cut short a summit with Kim Jong Un after failing to reach an agreement on curbing North Korea’s nuclear-weapons program. The abrupt end to meeting in Hanoi helped to underpin some modest gains in bullion, market participants said.

April gold

GCJ9, +0.23%

rose $3.70, or 0.3%, to $1,324.90 an ounce. For the month, bullion is clinging to a slight gain in February, based on the most-active contract, of about 0.1%.

Those monthly gains have come even as the U.S. dollar, as measured by the ICE U.S. Dollar Index

DXY, -0.09%

have enjoyed a 0.3% rise thus far in February. A stronger dollar usually weighs on demand for commodities pegged to the currency, making it relatively more expensive for buyers using other monetary units.

The yellow metal gave back some of its gains after fourth-quarter gross domestic product data came in stronger-than-expected at 2.6%.

Still, gold is up, hitting a 10-month high of $1,347.90 a week earlier, according to FactSet data. However, a monthly decline would snap a string of four straight monthly gains for the yellow metal.

“Gold is poised to end a run of four consecutive months of gains, coming off $1,340 – its highest level since April 2018,” wrote Lukman Otunuga, research analyst at FXTM, in a Thursday research note.

However, he said there were still reasons to be bullish on precious metals, citing unresolved issues between the U.S. and China on trade and “concerns over plateauing global growth among many other geopolitical risks straining investor confidence.”

Otunuga added: “it must be said that we’re not out of the woods just yet. Amid these developments, the fundamental questions remain; will the US and China strike a new trade deal that mutually appeases the world’s two largest economies?”

Meanwhile, gold-backed exchange-traded fund SPDR Gold Shares

GLD, -0.71%

 is down 0.7% so far in the week.

Among other metals, May silver

SIK9, +0.18%

 was up 0.2% at $15.79 an ounce. Also among the most-active contracts, March silver

SIH9, +0.18%

rose 0.2% to $15.70 an ounce.

The most-active June palladium contract

PAM9, +2.02%

 gained 2% to $1,506.60 an ounce.

April platinum

PLJ9, +0.94%

 rose 0.9% to $878.10 an ounce. May copper

HGK9, -0.14%

 shed 0.2% at $2.9575 a pound.

Want news about Asia delivered to your inbox? Subscribe to MarketWatch’s free Asia Daily newsletter. Sign up here.

Previous postEconomy slows to 2.6% in 4th quarter, GDP shows, but consumers and businesses show plenty of resilience Next postMattel is going to make a View-Master movie

Los Angeles Financial times

Copyright © 2021 Los Angeles Financial times

Updates via RSS
or Email