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Gold Falls

Gold FallsGold Falls

Gold prices fell for a second session on Monday after US President Donald Trump revived hopes that he would meet North Korean leader Kim Jong-un next month, lowering political tensions and demand for gold as a safe haven investment. The dollar also strengthened to a 2018 high, pressuring gold, Reuters reported. Spot gold slipped by 0.2% to $1,298.83 an ounce, while US gold futures for June delivery were down 0.4% at $1,298.20. Trading volumes were low, with New York and London markets closed for public holidays. Gold is traditionally used as a safe place to store assets during times of uncertainty. Gold had been trading between about $1,310 and $1,360 since hitting a 1-1/2 year high in January, but it was pushed lower this month as the dollar strengthened. Speculative bets on higher prices have fallen sharply, with funds’ net long position in COMEX gold falling to its lowest level in 10 months. Prices are now trapped between gold’s 200-day moving average at $1,307 and Fibonacci support at $1,286, said Saxo Bank analyst Ole Hansen.

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