Lower fear from easing geopolitical tensions have given investors a more risk-on appetite, keeping gold low, according to Peter Hug, global trading director for Kitco Metals.
Fear surrounding North Korea have largely abated after the announcement of a tentative meeting of the North Korean leader and President Trump. Hug told Kitco News that investors should be more worried than markets seem.
“I find it amazing that they would be prepared to totally de-nuclearize their program. It has taken some of the fear sentiment out of the market, which has been somewhat negative for gold,” he said.
Hug noted that the two main reasons for gold trading lower are a higher U.S. dollar and the precious metal’s failure to break above the $1,360 an ounce resistance level for the fourth time this year.