Gold Prices Back Above $1,300 Amid Renewed Safe-Haven Demand

Investing.com – Gold prices jumped more than 1% Thursday on the back of rising safe-haven demand after U.S. President Trump called off the Singapore summit with North Korea, scheduled for next month.

for June delivery on the Comex division of the New York Mercantile Exchange rose by $15.20, or 1.18%, to $1,304.80 a troy ounce.

Trump blamed North Korea’s recent inflammatory comments and “open hostility” for the cancellation of the summit and warned the U.S. military was standby if needed.

“Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have the long-planned meeting,” Trump said in a letter to Kim.

The rise in geopolitical uncertainty renewed appetite for safe-haven gold, while a slump in the dollar amid fading expectations for more aggressive U.S. monetary policy tightening also sparked further upside in the precious metal.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell to 93.64.

Gold is sensitive to moves lower in both bond yields and the U.S. dollar – A weaker dollar makes gold cheaper for holders of foreign currency raising demand while a fall in U.S. bond yields, limits the opportunity cost of holding non-yielding assets such as bullion.

The fall in dollar emerged as traders digested the Fed’s minutes of its May meeting released Wednesday, in which policymakers said they were comfortable with inflation temporarily overshooting the central bank’s 2% target, denting investor hopes of more aggressive monetary policy tightening.

In other precious metal trade, rose 1.71% to $16.68 a troy ounce, while gained 1.23% to $911.90 an ounce.

rose 0.93% to $3.099.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.