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Gold Prices Edge Higher with Central Banks, U.S.-North Korea Summit in Focus

Gold Prices Edge Higher with Central Banks, U.S.-North Korea Summit in Focus© Reuters. Gold digests G7 trade tensions, switches focus to North Korea and central banks

Investing.com – Gold prices started the week higher in midmorning trade Monday while investors returned to their desks to digest the trade tension over the weekend at the G7 summit and looked ahead to the summit between the U.S. and North Korea as well as key policy decisions from the Federal Reserve and European Central Bank.

At 10:27AM ET (14:27GMT), for August delivery on the Comex division of the New York Mercantile Exchange inched up $1.10 cents, or 0.08%, to $1,303.80 a troy ounce.

In a session with no major U.S. economic reports, market participants were busy digesting the increased trade tensions that came out of the G7 summit over the weekend.

U.S. President Donald Trump calling for a reduction of tariffs, as he continued to for allegedly treating the U.S. unfairly.

Markets seemed unfazed by the outcome, with equities trading mostly higher on Monday, as attention turned to Singapore where to take place on Tuesday at 9:30AM local time (9:30PM ET Monday/1:30GMT Tuesday). Quite to the contrary of the G7 results, Trump seemed upbeat about the prospects for the outcome. “I just think it’s going to work out very nicely.” Trump said in reference to the meeting.

In a press conference on Monday, U.S. Secretary of State Mike Pompeo commented that Trump believes Kim has an unprecedented opportunity and is hopeful that the summit will set the groundwork for future productive talks.

Pompeo was clear that the U.S. objective with regard to North Korea has not changed and that sanctions would remain until the country denuclearizes.

Meanwhile, markets were also prepping for a key week for . The Fed’s two-day meeting will kick off on Tuesday with almost certain to raise by a quarter point for a second time this year at the conclusion of its two-day policy meeting at 2:00PM ET (18:00GMT) on Wednesday.

Eyes will focus on policymakers’ and the posterior post conference from as investors look for fresh clues on the outlook for inflation and how that will impact the pace of monetary policy tightening for the remainder of the year.

In what has become one of the most keenly anticipated meetings in a long time, the ECB is , a key move in dismantling crisis-era stimulus.

An announcement is due at 7:45AM ET (11:45GMT) on Thursday, with a by president scheduled for 45 minutes after the policy decision.

Traders piled into the euro last week after hawkish comments from that the central bank will reveal more about its plans for exiting its aggressive quantitative-easing program at its upcoming meeting.

Not to be forgotten, although with perhaps a lower threshold for surprises, the Bank of Japan will also announce its own decision on Friday. The BoJ is widely expected to keep short-term interest rates at , followed by a press conference with .

Kuroda has previously said the central bank will telegraph to markets how it plans to exit from ultra-easy policy when conditions for hitting its price goal become robust. Although were some indications recently that the BoJ is setting the ground to begin discussions on winding back its quantitative easing program due to the rising costs of the stimulus program, consumer prices have risen more slowly than the BoJ had forecast.

In other metals trading, gained 1.3% at $16.955 a troy ounce by 10:27AM ET (14:28GMT), just off an intraday high of $16.975, its highest level since April 22.

rose 1.2% to $1,017.90 an ounce, while sister metal added 0.3% at $908.70.

In base metals, traded down 0.9% to $3.272 a pound.

Source: Investing.com

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