Gold: Trump cancels meeting with Kim sends gold past $1,300/oz


  • Trump cancels the summit with the North Korean leader and says: “the world has lost a great opportunity for lasting peace.”
  • Gold jumps on the news which triggers safe-haven flows. JPY and CHF are also in strong demand.

Gold soared almost $14 on Thursday as US President Trump canceled his historic meeting with the North Korean Leader Kim Jong Un originally planned for June 12 in Singapore. Trump decided to call -off the meeting as the rhetoric between the two leaders strongly deteriorated in the last week. 

The yellow metal is trading at around $1,305 a troy ounce up 0.90% on Thursday in one of its best daily advance in the last month. 

Some analysts argue that this might have been the right move to do in the given context but Trump unpredictability has yielded “few of the dividends he often promises,” according to Dan Balz from the Washington Post. “This episode speaks to the larger issue endemic to the current administration, which is the on-again, off-again style of leadership exhibited by the president on issues across the board, most recently in calling off a trade war with China after multiple threats and loose talk about how winning trade wars was easy,” he further added. 

Russian President Vladimir reacted by saying: “Kim Jong Un on his part did everything he promised to do, even blew up some tunnels on their sites and after this, we hear the US canceling the meeting. We in Russia view it with regret because we really counted on this very significant step toward the de-escalation of the situation on the Korean Peninsula and that this will be the beginning to the whole process of denuclearization. We hope very much that dialogue will be revitalized, renewed because without that we can’t hope for any kind of significant progress in solving this extraordinarily important issue."  

The safe-haven demand for gold was further reinforced by the US-China trade talk saga which so far has yielded no agreement. On the contrary, Trump recently announced 25% tariffs on imported vehicles to the US. 

Meanwhile, the US Dollar is in correction mode after the FOMC’s minutes didn’t bring any surprises but suggests a rate hike in June as anticipated. 

Gold 4-hour chart 

“The rally in gold so far was capped by the $1,306 level and also by the 20-day moving average. Above resistance levels might be located at 1,310 followed by 1,318. Today’s rally pushed the price above the 1,300 mark that could become now a relevant support. Below support levels might be seen at 1,291 and 1,285,” according to FXStreet’s own Matias Salord. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD stalls at key support juncture, eyes on 38.2 % correction

AUD/USD has been in the hands of the bears all the way to a critical support area and the focus now is on the correction pertaining to the USD. The focus is now on whether the US dollar gives back some ground before completing a 5-wave technical move to the upside.

AUD/USD News

Gold's potential short-term reprieve if USD pulls back

Gold prices have deteriorated in the US dollar's relentless comeback as investors move away from stocks. The price of the dollar is correlated to gold, so it stands to reason that if the dollar is about to tail off its gains, then gold should find reprieve.

Gold News

USD/JPY: This could be the bulls's last dance in the 105, eyes on 103.50s

USD/JPY is stalling at market structure and bears and looking for opportunity to the downside. Bulls might have some upside to go yet, but the air will be getting thinner in those heights.

USD/JPY News

Venezuela looking to legalize Bitcoin mining

Citizens of Venezuela will be able to mine Bitcoin, build mining rigs, import them and transact with them freely. Anyone interested in any of these actions will need to obtain a license.

Read more

WTI flirts with the 200-day SMA below $40.00/bbl ahead of EIA

Prices of the WTI are alternating gains with losses below the key $40.00 mark per barrel on Wednesday.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures