May 24, 2018 / 10:18 AM / 3 months ago

PRECIOUS-Gold jumps, dollar falls after Trump cancels N.Korea summit

    * Trump calls off June 12 meeting with N.Korea's Kim
    * Dollar hits near two-week low vs Japanese yen  

 (Updates prices, headline; adds comment, second byline, NEW
YORK to dateline)
    By Renita D. Young and Eric Onstad
    NEW YORK/LONDON, May 24 (Reuters) - Gold prices surged on
Thursday, propelled above $1,300 per ounce as the U.S. dollar
faded after U.S. President Donald Trump called off a summit with
North Korea, stoking political tensions. 
    Trump canceled the meeting with Kim Jong Un, planned for
June 12, even after North Korea followed through on a pledge to
blow up tunnels at its nuclear test site. The cancellation
prompted investors to seek a safe store of value.               
    Spot gold        gained 0.9 percent at $1,305.18 per ounce
by 1:34 p.m. EDT (1734 GMT), earlier hitting $1,306.56, a
nine-day high. U.S. gold futures         for June delivery
settled up $14.80, or 1.2 percent, at $1,304.40 per ounce. 
    "Gold got momentum on news the North Korea meeting was
canceled," said Phil Streible, senior market strategist at RJO
Futures.
    Before the North Korea news, spot gold was slightly firmer
but had been losing ground for weeks, shedding 5 percent since
touching $1,365.23 on April 11, the highest in nearly three
months.
    Funds had cut long positions in gold to a 10-month low, but
the move back above key technical levels of $1,300 and $1,305
was spurring a rush by speculators into bullion, Ole Hansen,
head of commodity strategy at Saxo Bank in Copenhagen, said.
    "It's a struggle to find any gold-negative news at the
moment," he added.
    Gold's safe haven appeal was also burnished after the U.S.
launched a national security investigation into car and truck
imports that could lead to new tariffs similar to those it
imposed on steel and aluminum.             
    "Trade spats are recurring and there's a focus on troubled
emerging markets," Hansen said.
    Turkey has been in the spotlight and the lira weakened more
than 2 percent, the day after a huge emergency interest rate
hike intended to stem its slide.             
    Gold was also buoyed by a weaker dollar, which slipped to a
near two-week low against the Japanese yen, and lower U.S.
Treasury yields.       
    "The Fed meeting minutes that appear to be less hawkish on
interest rates," from Wednesday provided gold more support,
Streible added.
    Among other precious metals, silver        gained 1.5
percent at $16.67 an ounce, platinum        climbed 1 percent at
$907.74 an ounce after touching the highest since May 14 at
$914.30. Palladium        shed 0.1 percent at $976 an ounce.
    Stephanie Aymes, head of technical analysis at Societe
Generale, said in a note that platinum has rebounded from a
multi-year trend at $890 and was now approaching a down sloping
channel near $924/31.
    "A cross above this is needed for signs of rebound."

 (Additional reporting by Karen Rodrigues and Apeksha Nair in
Bengaluru
Editing by John Stonestreet and Alistair Bell)
  
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