Gold Lower on Eased U.S.-North Korea Tensions

March 28, 2018

New York (Mar 28)  Gold prices fell Wednesday as investors sold the metal on signs of easing tensions between the U.S. and North Korea and a rally in the dollar.

Gold for June delivery was recently down 1.2% at $1,332.20 a troy ounce on the Comex division of the New York Mercantile Exchange.

North Korean leader Kim Jong Un traveled to China—his first trip outside his own country since coming to power—on a mission to strengthen ties with Beijing ahead of a planned summit with U.S. President Donald Trump. Concerns over a possible confrontation between the U.S. and North Korea have in recent months supported prices for gold, a popular destination for nervous investors.

A stronger dollar also pressured gold, which is denominated in the U.S. currency and becomes less affordable for foreign investors when the dollar rises.

The WSJ Dollar Index was recently up 0.5% at 83.79. The U.S. currency gained 1.3% against the yen, another haven asset.

In base metals, copper for May delivery was recently up 0.1% at $3.0020 a pound.


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