Investing.com - Gold prices slipped on Monday as the dollar strengthened on signs of easing tensions between the United States and North Korea, although the U.S.-China trade spat continued to be a concern.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange slipped $0.4, or 0.04%, to $1,335.7 a troy ounce by 12:27AM ET (04:27 GMT)
The U.S. confirmed that North Korean leader Kim Jong-un is willing to talk to President Trump about denuclearisation, which implied easing geopolitical tensions in East Asia that improved investors’ risk appetite.
The dollar fluctuated in Asia on Monday morning. The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 89.87, testing the 90 level after climbing up from the morning low at 89.83.
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.
Meanwhile, U.S. inflation data will be out later this week. The U.S. producer price index, forecast at 0.1%, will be due Tuesday, while the core consumer price index, expected to be 0.2%, will come on Wednesday.
In other precious metal trade, silver futures gained 0.2% to $16.395 a troy ounce, and platinum futures added 0.50% to $925.20 an ounce.