Gold prices surged on Thursday, propelled above $1,300 per ounce as the US dollar faded after US 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. US 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 cancelled," 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.
Gold's safe haven appeal was also burnished after the US launched a national security investigation into car and truck imports that could lead to new tariffs similar to those it imposed on steel and aluminium. 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.