Gold eases on firmer dollar; U.S.-N.Korea summit, Fed meeting in focus

Gold eases on firmer dollar; U.S.-N.Korea summit, Fed meeting in focus

BENGALURU (Reuters) - Gold prices edged lower on Tuesday, weighed down by a stronger dollar amid encouraging signs ahead of an historic U.S.-North Korea summit and a likely interest rate hike by the U.S. Federal Reserve.

FUNDAMENTALS

** Spot gold was down 0.2 percent at $1,297.68 per ounce at 0046 GMT.

** U.S. gold futures for August delivery were 0.1 percent lower at $1,301.60 per ounce.

** The dollar index <.DXY>, which measures the greenback against a basket of six major currencies, edged 0.3 percent higher at 93.819. [USD/]

** U.S. President Donald Trump said his summit with North Korean leader Kim Jong Un in Singapore on Tuesday would show if a "real deal" could happen, as both sides sought to narrow differences over how to end a nuclear standoff on the Korean peninsula.

** U.S. inflation expectations were flat in May after several months of gains, while Americans grew more pessimistic about income and spending growth, according to a Federal Reserve Bank of New York survey published on Monday.

** The Federal Reserve, which meets this week, will likely raise its target interest rate to above the rate of inflation for the first time in a decade, igniting a new debate: when to stop.

** Trump fired off a volley of tweets on Monday venting anger on NATO allies, the European Union and Canadian Prime Minister Justin Trudeau in the wake of a divisive G7 meeting over the weekend.

** Bank of Japan policymakers will debate this week whether structural factors may be behind recent disappointingly slow inflation, which could force them to cut the central bank's price forecasts at a quarterly review in July.

** Canada's Goldcorp said on Monday an ongoing protest blocking entry to its Penasquito mine, one of Mexico's biggest gold producers, could force the company to halt output.

** Three gold miners were killed in South Africa on Monday at a Sibanye-Stillwater plant and the company said rescue teams are searching for two others.

** Rioters in southern Mali ransacked local government buildings on Monday following a dispute between workers and management at Randgold's RRS.L Loulo and Gounkoto gold mines, the government said.

(Reporting by Karen Rodrigues in Bengaluru; editing by Richard Pullin)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Jun 12, 2018 07:05 AM

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