Gold rallied Thursday, jumping back above the key $1,300-an-ounce level, as the U.S. stock market, dollar and Treasury yields declined following President Donald Trump’s cancellation of a planned meeting North Korean leader Kim Jong Un.
“It seems obvious that the spike in gold is due to the cancellation of the summit with North Korea,” Brien Lundin, editor of Gold Newsletter, told MarketWatch.
June gold jumped $15.80, or 1.2%, higher to $1,305.40 an ounce. A finish around this level would be the highest since May 14. Price had settled on May 17 at $1,289.60, the lowest of 2018 so far.
Prices for the metal had seen smaller gains before news, finding some support as minutes from the U.S. Federal Reserve’s May meeting didn’t indicate a more aggressive pace of interest-rate increases was in the offing. Central bank officials backed longstanding market expectations for an interest-rate hike next month.
Source : Marketwatch