Hawaii Six O - Gary Wagner
It’s A NOGO For NOKO
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
It’s a no go for the United States - North Korea summit, or is it?
According to the New York Times, today President Trump pulled out of the highly anticipated summit meeting in June with Kim Jong-un. President Trump said that multiple hostile statements emanating from North Korea were the underlying reasons for canceling this momentous event. The president told the North Korean leader” this missed opportunity is a truly sad moment in history”.
However, in true Trump-ion style. The president later said that a meeting with Mr Kim, which had been scheduled for June 12 in Singapore, could still happen, even as he renewed threats of military action against the north and vowed to continue a campaign of economic pressure against Mr. Kim’s regime.
“The mixed messages deepened the uncertainty around a diplomatic encounter that had an air of unreality from the time in March when Mr. Trump spontaneously accepted Mr. Kim’s invitation to meet.”
The president officially announced his intention in a formal letter to the North Korean leader in which he cited divisive statements about Vice President Mike Pence as the specific reason for canceling the meeting.
“Based on the tremendous anger and open hostility displayed in your most recent statement, I believe it is inappropriate, at this time, to have this long-planned meeting. Please let this letter serve to represent that the Singapore summit, for the good of both parties, but to the detriment of the world, will not take place.”
Trumps cancellation increases geopolitical concern
This action had obvious repercussions both politically as well as in the financial markets. Gold rallied breaking back above the key psychological level of $1300 per ounce. This being the first instance of $1300 gold since the dynamic selloff a week ago Tuesday which took gold $28 lower.
Prior to this announcement gold had been slowly and methodically attempting to form a baseline of support, just above a critical level (.618% Fibonacci retracement) at $1288. Gold settled $14.40 higher and is currently fixed at $1304.40, this basis the most active June futures Comex contract.
Today’s upside spike in gold pricing was due to a combination of a weakening US dollar, with the majority of the gains directly attributable to traders bidding up the precious yellow metal. Spot gold closed $11.10 higher on the day and is currently fixed at $1304.10. According to the KGX (Kitco gold index) $8.60 of today’s gains is due to buying, with the remaining $2.50 attributable to a softer US dollar.
For those who would like more information, simply use this link.
Wishing you as always, good trading,