Investing.com – Gold prices were up on Monday as the dollar softened after U.S. President Donald Trump decided to back out of the G7 Summit joint communique, ahead of his historic meeting with North Korean leader Kim Jong Un and the central bank’s policy meeting this week.
for August delivery on the Comex division of the New York Mercantile Exchange was up 0.03, or 0.05%, to $1,303.2 a troy ounce by 1:05AM ET (05:05 GMT).
Meanwhile, the , which tracks the greenback against a basket of six major currencies, lost 0.09% to 93.47.
The dollar took a dip after Trump left early at the Group of Seven (G7) Summit held in Canada over the weekend. He later tweeted that he was backing out of the joint communique and lashed out against Canadian Prime Minister Justin Trudeau.
“PM Justin Trudeau of Canada acted so meek and mild during our @G7 meetings only to give a news conference after I left saying that, ‘US Tariffs were kind of insulting’ and he ‘will not be pushed around.’ Very dishonest & weak. Our Tariffs are in response to his of 270% on dairy!” Trump tweeted Saturday evening.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – a gain in the dollar makes gold more expensive for holders of foreign currency and thus decreases demand for the precious metal.
Trump has now arrived in Singapore on Sunday where he’s scheduled to meet North Korean leader Kim Jong Un.
Meanwhile, the Fed is expected to raise the interest rate for the second time this year at Wednesday’s meeting.
In other precious metal trade, gained 1.0% to $16.9 a troy ounce, and climbed 0.3% to $910.50 an ounce.
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Source: Investing.com
