Safe-haven interest wanes in Gold after US -North Korea summit
NEW YORK (Scrap Register): Gold eased but only slightly after the leaders of the U.S. and North Korea pledged to work toward denuclearization of the Korean Peninsula, but the pullback was modest as much uncertainty remains, said commodities brokerage SP Angel in a research note.
“Safe-haven interest continues to wane after [U.S.] President Donald Trump and [North Korean leader] Kim Jong Un signed a document pledging to work toward peace on the Korean Peninsula,” SP Angel added.
The co-signed document says the North Korean leader reaffirmed his firm and unwavering commitment to complete denuclearization of the Korean Peninsula while Trump agreed to provide security guarantees to the North.
“While progress towards peace gives bearish signals for gold, Trump’s move to meet Kim Jung Un attracted fierce criticism for normalizing a regime routinely called out for its human-rights abuses, that over years has built an image of fearsome renegade regime, throwing around threats of nuclear war,” SP Angel noted.
“The document neglects to answer some key questions focusing on definitions and the process of denuclearization, details of the security reassurances and the removal of U.S. troops from S. Korea,” the firm added.