Monday , October 22 2018
Home / Commodity Blog / Gold Steadies Ahead of Trump-Kim Summit, Fed Meeting

Gold Steadies Ahead of Trump-Kim Summit, Fed Meeting

Summary:
Gold futures are edging higher to kick off a week of fresh trading ahead of two key events this week. Investors will be paying close attention to the upcoming President Donald Trump and North Korean leader Kim Jong-un meeting, as well as the next Federal Reserve policy meeting. The yellow metal could trade higher or lower based on the geopolitical fallout and the move on interest rates. August gold futures rose .00, or 0.15%, to ,304.70 per ounce at 16:22 GMT on Monday. Gold prices recorded a tepid weekly gain of 0.4% last week, but they are still down about 1% so far in June. The white metal is rallying to start the trading week. July silver futures rallied %excerpt%.19, or 1.16%, to .93 an ounce. The sister commodity to gold also reported a weekly jump of 2% last week, while still

Topics:
Andrew Moran considers the following as important:

This could be interesting, too:

Vladimir Vyun writes Symmetrical Triangle Pattern on H4 Chart of Gold

Andrew Moran writes Gold Eyes Narrow Weekly Gain As Weaker Equities Lift Metals

Vladimir Vyun writes Gold Gains, Other Metals Fare Far Worse After Fed Minutes

Andrew Moran writes Gold Rallies Over Dollar Weakness As Investors Eye ,238

Gold futures are edging higher to kick off a week of fresh trading ahead of two key events this week. Investors will be paying close attention to the upcoming President Donald Trump and North Korean leader Kim Jong-un meeting, as well as the next Federal Reserve policy meeting. The yellow metal could trade higher or lower based on the geopolitical fallout and the move on interest rates.

August gold futures rose $2.00, or 0.15%, to $1,304.70 per ounce at 16:22 GMT on Monday. Gold prices recorded a tepid weekly gain of 0.4% last week, but they are still down about 1% so far in June.

The white metal is rallying to start the trading week. July silver futures rallied $0.19, or 1.16%, to $16.93 an ounce. The sister commodity to gold also reported a weekly jump of 2% last week, while still advancing roughly 2.5% this month.

Precious metals are benefiting from a lower US dollar as the greenback shed 0.02% to 93.54. The buck edged lower last week, but the currency is still up more than 4% since the middle of March. A lower dollar is good for commodities priced in dollars because it makes it cheaper for foreign investors to purchase.

The US dollar is trying to find a clear near-term path. With tensions between the G7 leaders intensifying from this weekend’s meeting, traders fear that a trade war might expand, particularly in North America as Canada, the US, and Mexico impose tariffs and import restrictions on each other. Since exiting the Quebec-based summit, Trump has gone on a Twitter tirade, slamming Canadian Prime Minister Justin Trudeau.

On Tuesday, the US central bank will begin its two-day Federal Open Market Committee (FOMC) meeting. The market widely anticipates that Fed Chair Jerome Powell will pull the trigger on a rate hike. Gold is generally sensitive to a rising-rate environment since it lifts the opportunity cost and typically sends investors into yield-bearing assets.

President Trump will sit down with Kim as part of a historic meeting in Singapore on Tuesday. Should Trump and Kim come to a successful agreement, resulting in fewer hostilities in the Korean Peninsula, then there would be a diminished demand for the safe-haven asset.

In other metal commodities on Monday, July copper futures slipped $0.036, or 1.09%, to $3.264 per pound. July platinum futures slid $1.00, or 0.11%, to $904.70 an ounce. July palladium futures surged $11.60, or 1.15%, to $1,017.30 per ounce.

If you have any questions and comments on commodities today, use the form below to reply.


© AndrewMoran for Commodity Blog, 2018. | Permalink | No comment | Add to

Better Feed from Ozh

Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

Leave a Reply

Your email address will not be published. Required fields are marked *