Gold under Pressure on Positive Cues from U.S-N.Korean Summit

Weighing on gold are encouraging signs from U.S. President Donald Trump about favorable proceedings in the summit with North Korean leader Kim Jong Un in Singapore on denuclearization efforts, dimming gold’s safe haven attraction. 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 and this is expected to add further dovish pressure to the yellow metal.

Gold Still Struggling

As of writing this article XAUUSD pair is trading at $1298.36 and is expected to see further downtrend momentum should the press meet confirm US President Trump’s comment on N.Korea deciding to begin denuclearization as this will increase US dollar’s value even higher than it is now? Silver saw increased attention ahead of US-N. Korean summit across the global market as XAGUSD hit new seven-week high at $16.947 during yesterday’s North American trading hours. However positive cues from the summit in Singapore caused silver to move down slightly and the pair is currently trading at $16.887.

Oil prices still need more support and stability, and the pact producers “should not over exaggerate the need of the oil market for more oil supplies in the time being,” the oil minister of OPEC’s second-largest producer said in a statement as carried by Reuters. The current volatility in the global oil market is, according to most analysts, due to fears that markets are facing a severe threat. A doomsday scenario is being painted in the media which suggests that oil prices will collapse as Moscow and Riyadh allow for OPEC compliance to slip and that a glut of Saudi crude will be hitting the market. Brent Crude and US Crude continue to trade in discount. WTIUSD is currently trading at $66.48 as investors focus on OPEC summit.