Published: 2018.03.09. Gold Prices Move Lower as Sentiment Recovers

Gold Prices Move Lower as Sentiment Recovers - Preview

Gold prices moved lower on Friday, as market sentiment improved following news of an upcoming meeting between the U.S. and North-Korean leaders and as concerns over a potential global trade war slightly eased.

Comex gold futures were down 0.20% at $1,319.2 a troy ounce by 02:20 a.m. ET (06:20 GMT).

Market sentiment was boosted after U.S. President Donald Trump on Thursday announced his willingness to accept an invitation to meet North Korean leader Kim Jong Un before May, with hopes of achieving “permanent denuclearization”.

South Korea's National Security Office said Kim "expressed eagerness to meet President Trump as soon as possible" and that the North-Korean leader pledged to "refrain from any further nuclear or missile tests" while talks are underway.

Meanwhile, concerns over a potential global trade war due to U.S. tariffs on steel and aluminum imports eased after President Trump signed a more tempered version of the plan on Thursday.

Trump signed the imposition of 25% tariffs on steel imports and 10% for aluminium but announced exemptions for Canada and Mexico and left the door open for exceptions for other countries.

Japan reacted to the news by sayong the move would have a "big impact" on the countries' close bilateral ties, while China said it was "resolutely opposed" to the decision. South Korea said it may file a complaint to the World Trade Organization.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 90.14, the highest since March 1.

Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.