Gold holds above psychological $1,300 level
Analyst says the "uplift in price should be temporary and we should fall back below $1,300" due to the metal’s "very tight relationship with the dollar"
London — Gold prices steadied on Friday after breaking above $1,300/oz in the previous session when US President Donald Trump called off a meeting with North Korean leader Kim Jong-un, fanning political tension. Spot gold was flat at $1,304.84/oz at 9.44am GMT but on track to end the week up 1% for its biggest weekly gain since March. US gold futures for June delivery were also unchanged at $1,304.40. Gold was traditionally used as a safe place to park assets in times of uncertainty, but Trump’s decision would have limited effect on prices, said Julius Baer analyst Carsten Menke. "This is pretty typical for these kinds of geopolitical jitters. Very short-term sharp reaction, then a lack of follow through, given that this basically does not have any implication for the global economy or financial markets," he said. "Based on this pattern and on gold’s very tight relationship with the US dollar, this uplift in price should be temporary and we should fall back below $1,300/oz." Gold te...
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