Gold Prices Off Session Lows as Dollar Weakens

Investing.com – Gold prices traded unchanged despite falling safe-haven demand amid easing geopolitical tensions as U.S. President Donald Trump agreed to meet with North Korean leader Kim Jong Un.

for April delivery on the Comex division of the New York Mercantile Exchange rose by $1.80, or 0.14%, to $1,323.70 a troy ounce. Gold prices rebounded after falling to a session low of $1,313.40.

The White House confirmed Friday that President Donald Trump has agreed to meet with North Korean leader Kim Jong Un.

“Trump will accept the invitation to meet with Kim Jong Un at a place and time to be determined,” said White House spokeswoman Sarah Sanders.

Some questioned of sincerity of Kim Jong Un conciliatory gesture as it was only a few months ago that the two nations exchanged a flurry of verbal threats.

Offsetting easing geopolitical tensions, however, was dollar weakness after U.S. labor market showed the economy created more jobs than anticipated but wage growth remained subdued.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – A fall in the dollar makes gold cheaper for holders of foreign currency and thus, increases demand for the precious metal.

Timid wage growth in the face of tightening labor markets has been a constant conundrum to the Federal Reserve but this is unlikely to alter the expected pace of interest rate hikes.

“February’s data confirmed our suspicion that last month’s strong wage figure was largely an illusion,” CIBC said. “The wage numbers should allay fears of a quick pick up in inflation, and as such we still see the Fed hiking interest rates three times this year.”

In other precious metal trade, rose 0.64% to $16.60 a troy ounce, while gained 1.21% to $963.80 an ounce.

rose 1.85% to $3.14, while fell 0.87% to $2.73

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