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Gold steady ahead of key cenbank meetings, U.S.-North Korea summit

Reuters  |  BENGALURU 

By Karen Rodrigues

BENGALURU (Reuters) - Gold traded steady on Monday with investors awaiting key central and the United States-summit this week for direction.

Spot gold was steady at $1,297.75 per ounce at 0719 GMT, while U.S. gold futures for August delivery were 0.1 percent lower at $1,301.60 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, fell 0.2 percent to 93.381.

"The market opened predictably quiet ahead of the abundance of risk events this week and wholly ignored Trump going rogue at the G7," Stephen Innes, at said, adding that with geopolitical risk moderating, it will be the FED and ECB that will guide gold's near-term fate.

U.S. threw the G7's efforts to show a united front into disarray after taking aim at Canadian Justin Trudeau, adding he might double down on import tariffs by hitting the sensitive auto industry.

Market Committee (FOMC) starts its two-day meeting on Tuesday, where it is anticipated to raise U.S. interest rates. The (ECB) and Bank of Japan's policy meetings are also due this week.

Markets are also keeping a close eye on the historic summit between Trump and North Korean leader in on Tuesday.

Gold is trading in a very tight range and people are waiting for the next move, a Hong said.

"We have the FOMC coming up and the Trump meeting with Kim Jong Un, so the markets are just watching what's going on. If there's a better risk aversion money will fly into gold," said the

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.46 percent to 828.76 tonnes on Friday, the lowest since February 22.

Speculators cut their net long position in COMEX gold by 3,169 contracts to 58,066 contracts in the week to June 5, (CFTC) data showed on Friday.

Silver dealers raised their net long position by 3,431 contracts to 4,295 contracts. This was the strongest net long position since late April, CFTC said.

In other precious metals, silver gained 0.6 percent to $16.83 an ounce, after hitting a seven-week high of $16.93 earlier in the session.

Palladium was down 0.2 percent at $1,012.75 an ounce, while platinum rose 0.7 percent to $907.90 an ounce. It touched a one-week high of $910.50 earlier in the session.

(Reporting by in Bengaluru; Editing by and Sunil Nair)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 11 2018. 13:31 IST