Make Kitco Your Homepage

The World Seems To Feel Safer After Trump-Kim Summit

Kitco News

(Kitco News) - Financial markets breathed a sigh of relief following Donald Trump’s historic summit in Singapore with North Korean leader Kim Jong-un.

The S&P 500 rose 0.2%, spot gold fell by $3, U.S. 10-year bond yields were up 75 basis points, and the U.S. dollar index remained relatively unchanged.

Tuesday marked the first time a sitting U.S. President and a member of the Kim dynasty met face to face.

According to a joint statement signed at the end of the summit, both parties agreed on the complete denuclearization of the Korean peninsula, although few specific plans have been laid out on the removing North Korea’s nuclear arsenal.

“President Trump committed to provide security guarantees to the DPRK [Democratic People’s Republic of Korea] and Chairman Kim Jong Un reaffirmed his firm and unwavering commitment to complete denuclearization of the Korean Peninsula,” the statement said.

Trump added at a press conference that denuclearization would start “very, very quickly.”

Tensions between the two nations have been the epicenter of heightening geopolitical tensions last year, with North Korea taking center stage in Trump administration’s foreign policy agenda.

While Tuesday’s summit saw markets react relatively calmly, doubts over whether or not the summit would actually take place in the past have caused markets to tumble.

On May 24th, Trump cancelled his planned summit with Kim on June 12th, sending the S&P 500 down 2% over the following days.

One of the most surprising parts of the negotiations in Singapore is Trump’s willingness to halt joint military exercise with South Korea, which is a U.S. ally. The U.S. has previously ruled out a halt in military exercises on the Korean peninsula as part of its military alliance with Seoul.

Other agreements that have been signed include the recovering of POW/MIA remains and their immediate repatriation, as well as a willingness to “build a lasting and stable peace regime on the Korean Peninsula.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News