Gold Prices Drop On Stronger Dollar Amid Trump-Kim Summit
Gold prices took a dip on Tuesday amid expectations for a positive outcome from the summit between U.S. President Donald Trump and North Korean leader Kim Jong Un.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange were down $2.40 or 0.18%, to $1,300.90 a troy ounce by 12:45PM ET (04:45 GMT).
The Trump-Kim meeting started at around 09:00PM ET (01:00GMT) in Singapore. The market is generally looking forward to some positive outcomes on denuclearization on the North Korea Peninsula.
Meanwhile, the U.S. dollar index, designed to track the greenback against a basket of six major currencies, rose 0.17% to 93.72.
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.
Oil steady as Trump cites progress in talks with Kim
Oil markets were stable on Tuesday amid cautious optimism over the outcome of a summit between U.S. President Donald Trump and North Korean leader Kim Jong Un in Singapore.
Movements in crude markets were also limited ahead of a meeting between the Organization of the Petroleum Exporting Countries (OPEC) and some of its allies on June 22 that may determine the crude production policy of several major producers.
Brent crude futures (LCOc1) were trading at $76.54 a barrel at 0514 GMT, up 8 cents, or 0.1 percent, on their last close.
U.S. West Texas Intermediate (WTI) crude futures (CLc1) were at $66.25 a barrel, up 15 cents, or 0.2 percent, from their last settlement.
Crude has been supported by healthy demand and voluntary production cuts led by OPEC, but analysts said oil markets were also currently heavily driven by public policy events and statements.
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