Yahoo Finance Gold Prices to Post First Weekly Slump in Three Weeks as Dollar Edges Up
Investing.com – Gold prices remained on course to snap a two-week winning streak as safe-haven demand faded amid easing geopolitical concerns, while continued dollar strength added to downside momentum.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange fell by $9.90, or 0.73%, to $1,338.90 a troy ounce.
Gold prices remained close to their session lows of $1,337.10 as the dollar continued to gather momentum boosted by slump in the Canadian dollar and sterling, while the ongoing rise in 10Y yields above 2.9% also supported sentiment.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.
Falling safe-haven demand, which had supported a strong uptick in the dollar last week continued to ebb as a meeting between U.S. President Donald Trump and Japan Prime Minister concluded without a hitch.
Improving U.S.-North Korea tensions also weighed on safe-haven demand after the
U.S. President Donald Trump said earlier this week that he hoped a summit with North Korean leader Kim Jong Un would be successful.
In other precious metal trade, silver futures fell 0.46% to $17.16 a troy ounce, while platinum futures fell 0.94% to $931.30 an ounce.
Copper rose 0.13% to $3.14.
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