Investing.com – Gold prices remained supported as a subdued dollar continued to underpinned upside in the precious metal despite easing geopolitical tensions.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange rose by $4.20, or 0.31%, to $1,353.60 a troy ounce.
Gold prices continued to defy the drop in safe-haven demand which followed reports of easing U.S.-North Korea tensions.
A “good relationship” was formed between the U.S. and North Korea after CIA director Mike Pompeo travelled to Pyongyang for a secret meeting with North Korean leader Kim Jong-un, US President Donald Trump confirmed.
That raised the prospect of a positive outcome from the Trump-Kim summit – the details of which are yet to be finalised.
Losses in gold prices amid easing geopolitical tensions were offset by ongoing dollar weakness as St. Louis Federal Reserve president James Bullard warned that the yield curve could invert– a key predictor of a recession - within six months.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – A fall in the dollar makes gold cheaper for holders of foreign currency and thus, increases demand for the precious metal.
The subdued dollar comes ahead of the release of the Fed’s beige book economic report due at 2.00 p.m. ET, which could cement investor expectations for further Federal Reserve rate hikes, should the report support the narrative of strong U.S. economic growth and inflation.
In other precious metal trade, silver futures rose 2.64% to $17.23 a troy ounce, while platinum futures rose 0.51% to $944.60 an ounce.
Copper rose 2.52% to $3.16.