Gold prices were little changed on Monday as investor interest in the yellow metal dropped as the US dollar steadied and there were signs of easing tensions on the Korean peninsula, reducing the safe-haven demand for gold.
Spot gold fell 0.1 per cent to $1,320.80 per ounce at 0428 GMT. U.S. gold futures for June delivery declined 0.1 per cent to $1,322 per ounce.
Gold is set for a slight monthly decline of 0.2 per cent for April “Gold is still tracked very closely with the dollar,” said Helen Lau, analyst at Argonaut Securities. The dollar index , which touched a 3-1/2-month high of 91.986 on Friday, was steady at 91.552.
Markets were mostly quiet on Monday with Japan, China and India on holiday and as much of Asia will be closed on Tuesday.
“Geopolitical risks also seem to be turning around... Everybody want to comes to the table and negotiate a deal,” Lau added. At their summit on Friday, North Korean leader Kim Jong Un Kim and South Korean President Moon Jae-in declared they would take steps to formally end the 1950-53 Korean War, which ended only with a truce, and work towards the “denuclearisation” of the Korean peninsula.
Separately, a delegation of U.S. officials, including Treasury Secretary Steven Mnuchin and President Donald Trump's top economic and trade advisers are all expected in China later this week for trade negotiations.
Gold is often used as a store of value during times of financial or political uncertainty. “Gold positions continued to be rolled back as the markets are adjusting portfolios given the increased potential for the dollar to rise in the weeks ahead becomes a reality,” said Stephen Innes, APAC trading head at OANDA.
Hedge funds and money managers trimmed their net long position in COMEX gold contracts and switched to a net long position in silver contracts in the week to April 24, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.
Spot gold looks neutral in a range of $1,317-$1,326 per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao. Among other precious metals silver fell 0.1 per cent to $16.47 per ounce but is set to rise 0.9 per cent for the month. Platinum fell 0.3 per cent, to $907.60 per ounce and was on track to record its third consecutive monthly fall, down 2.1 per cent. Palladium was down 0.5 per cent to $969 per ounce and is set for a 2 per cent monthly gain.