Gold Prices Tick Higher as Dollar Slips; Eyes on Talks with North Korea

  • Commodities News
Gold Prices Tick Higher as Dollar Slips; Eyes on Talks with North Korea
Credit: © Reuters. - Gold prices moved higher on Thursday, supported by weakness in the dollar and concerns over the eventual U.S.-North Korea summit.

Comex gold futures gained $1.30, or around 0.1%, at $1,354.80 a troy ounce by 4:18AM ET (8:18GMT), while the U.S. dollar index , which measures the greenback’s strength against a trade-weighted basket of six major currencies, slipped 0.03% to 89.32.

A stronger greenback makes the dollar-denominated metal more expensive for holders of other currencies.

Geopolitical developments were in focus as U.S. President Trump said the plan for the summit between the U.S. and North Korea leader Kim Jong Un might not happen if he did not think it would produce meaningful results.

On Thursday’s economic calendar, focus will be on weekly jobless claims released at 8:30AM ET (12:30GMT) a day after the Federal Reserve’s Beige Book showed that tightness in the labor market has yet to boost wage growth pressure.

Released at the same time, economists forecast a slight drop in the Philly Fed manufacturing index .

Speeches by FOMC Member Lael Brainard at 8.00 a.m. ET, FOMC Member Randal Quarles at 09.30 a.m. and FOMC Member Loretta Mester at 6.45 p.m ET.

The Fed speeches are likely to be closely monitored after St. Federal Reserve James Bullard counterpart warned that the yield curve could invert– a key predictor of a recession - within six months.

Traders are currently pricing in around a 97% chance of a rate hike in June, according to’s Fed Rate Monitor Tool . Odds of a third rate hike by December was seen at about 89%.

Gold seems to have taken the expectations in stride although increasing rates generally put pressure on the precious metal, which does not pay interest, as it struggles to compete with yield-bearing assets.

In other metals action, silver futures were up 1.2 cents, or 0.1%, at $17.260 a troy ounce by 4:19AM ET (8:19GMT).

Palladium futures gained 1.0% to $1,044.90 an ounce. Sister metal platinum meanwhile rose 0.8% at $953.50.

Nickel surged 6.4% to $16,262.50 a metric ton as reports that hat Russian mining firm Norilsk Nickel could be caught up in U.S. sanctions against Moscow.

Meanwhile copper traded up 0.9% to $3.187 a pound.

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