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Gold Dips Below Key $1,300 on Memorial Day Holiday

May 28, 2018 at 16:39 by Andrew Moran

Gold futures are sliding on the Memorial Day holiday which has US markets closed on Monday. The yellow metal is trading lower on reports that the US-North Korea summit talks may be revived, giving the greenback a slight boost.

June gold futures shed $6.10, or 0.47%, to $1,297.60 per ounce at 16:13 GMT on Monday. Gold prices have been hovering around the crucial $1,300 threshold for the last two trading weeks. Gold posted a tepid 1% gain last week.

Silver, the sister commodity to gold, is also in the red. July silver futures slipped $0.06, or 0.40%, to $16.48 an ounce. The white metal posted a small weekly increase of 0.5% last week.

On Sunday, President Donald Trump said that US negotiators are in Pyongyang to discuss renewing a meeting between the president and North Korean leader Kim Jong-un. Last week, Trump cancelled the June summit because of belligerent language emanating from the country’s leadership.

The positive developments helped strengthen the US dollar as the greenback surged 0.30% to 94.40. A stronger buck is bad for commodities that are priced in dollars, like gold and silver, because it makes it more expensive for foreign investors to purchase.

According to the US Commodity Futures Trading Commission (CFTC), money managers and hedge funds slashed their net long positions in gold to their smallest positions since July 2017.

Gold’s losses were capped after news that efforts to establish a coalition government in Italy crumbled because President Sergio Mattarella denied a selection for an important position in the economy ministry. The nominee is a skeptic of the European Union (EU). Experts warn that the collapse might trigger a constitutional crisis and lead to new elections.

In other metal commodities, July copper futures shed $0.01, or 0.42%, to $3.06 per pound. July platinum futures rose $1.80, or 0.20%, to $903.10 per ounce. July palladium futures dropped $0.40, or 0.04%, to $976.40 an ounce.

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