Gold slides from 1-year high as North Korea tensions ebb
Gold prices started the week within the back foot on Monday, choice their strongest level in many than just a year as investor concern over the standoff between U.S. and North Korea eased.
Comex gold futures were at $1,339.96 a troy ounce by 2:40AM ET (0640GMT), down $11.30, or around 0.9%, and well below Friday’s peak of $1,362.40, that has been the best level since Aug. 3, 2019.
Appetite for safe-haven assets eased amid relief that North Korea didn’t conduct a weapons test over the past weekend to mark the anniversary of the country’s founding.
There was speculation inside lead up to the weekend that North Korea could conduct its next missile test then to celebrate the occasion.
Risk sentiment received an extra boost after Hurricane Irma struck the U.S. southeast with less force than once feared, scaling back estimates for economic damage.
The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was almost 0.3% higher at 91.55, after skidding to a 2-1/2-year low of 90.99 on Friday.
Gold prices notched a 3rd weekly grow in a row this morning. The yellow metal have been well-supported recently amid concerns over geopolitical uncertainty for the Korean peninsula and reduced expectations of U.S. monetary policy tightening.
Global markets will focus on an essential batch of U.S. economic data from the week ahead, with Thursday’s inflation report the center of attention, for even more clues over the timing within the next Federal Reserve rate hike.
Markets remain skeptical the Fed will raise rates again before the end on this year resulting from worries covering the subdued inflation outlook, but it is widely anticipated to start particles reducing its balance sheet sometime this fall.
Elsewhere on the Comex, silver futures sank 25.4 cents, or about 1.4%, to $17.86 a troy ounce. It rose to some more than four-month peak of $18.29 inside prior session.
Among other silver and gold, platinum shed 0.7% to $1,003.95, while palladium tacked on 0.8% to $939.35 an ounce.