BENGALURU. — Gold prices slipped yesterday, pressured by a stronger dollar, while investors focused on North Korea tensions and remained cautious ahead of an annual central banking meeting in Jackson Hole later this week. Spot gold was down 0,4 percent at $1,285.48 an ounce, as of 0728 GMT, after ending 0,5 percent higher in the previous session. US gold futures for December delivery fell 0,6 percent to $1,289.10 per ounce.
“The US and South Korea’s military training will probably induce some move from North Korea. I think people are getting ready for any move so that’s why gold came back up yesterday,” said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank.
The United States and South Korea began long-planned joint military exercises on Monday, heightening tensions with North Korea, which called the drills a “reckless” step toward nuclear conflict.
“The dollar is a bit stronger and that’s why gold is coming off a bit. People are really kind of cautious about the market with this North Korea and US situation and also the Jackson Hole meet later this week.”
The dollar index, which tracks the greenback against a basket of six major rivals, was up 0,2 percent at 93,293. Investors are awaiting the US Federal Reserve’s annual central bank conference in Jackson Hole, Wyoming, this week for clues on monetary policy outlook, with the European Central Bank chief Mario Draghi and Fed Chair Janet Yellen set to speak at the event. — Reuters.