Investing.com – Gold prices were lower for the second consecutive session on Monday, falling further below the $1,300 level amid waning safe haven demand on the back of easing geopolitical tensions.
for June delivery on the Comex division of the New York Mercantile Exchange were down $7.40 or 0.56% to $1,296.40 a troy ounce by 05:03 AM ET (09:03 AM GMT), not far from an overnight low of $1,294.70.
Risk appetite was boosted after U.S. President Donald Trump said on Sunday that a U.S. team had entered to prepare for a proposed summit between him and North Korean leader Kim Jong Un, despite question marks hanging over the talks.
Elsewhere, Italy’s populist parties abandoned their bid to form a coalition government after the country’s President Sergio Mattarella of a euro sceptic finance minister.
Investors had feared that the coalition could endanger Italy’s membership in the euro zone.
Geopolitical tensions tend to boost gold, which is regarded as a safe-haven asset during periods of uncertainty.
Gold’s losses were held in check by the weaker dollar. The , which measures the greenback’s strength against a basket of six major currencies, was down 0.15% at 94.07, pressured lower by the stronger euro.
A weaker U.S. currency makes dollar denominated gold less expensive for overseas buyers.
In other metals trading, July were down 0.46% at $16.46 a troy ounce, while July were up 0.42% to $905.10. July were off 1.19% at $3.040 a pound.
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Source: Investing.com
