Gold prices dipped in Assa on Tuesday as North Korea appeared to back away from threats to fire missiles at or near U.S. territory Guam and the dollar made a mild recovery from recent weakness.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell 0.75% to $1,280.66 a troy ounce.
Overnight, gold prices retreated from two-month highs on Monday, as risk appetite returned, after tensions eased between the U.S.-North Korea, following comments from U.S. officials downplaying the prospect of war on the Korean peninsula.
Gold prices eased from two-month highs, as investors cheered comments from U.S. Defense Secretary Jim Mattis and Secretary of State Rex Tillerson downplaying the risk of imminent war on the Korean peninsula.
The U.S. has no interest in regime change or accelerated reunification of Korea. We do not seek an excuse to garrison U.S. troops north of the Demilitarized Zone, the officials said, addressing some of Pyongyang's fears that Washington ultimately intends to replace the reclusive country's leadership.
Losses in the yellow metal, however, were limited as sentiment on tighter monetary policy remained subdued, following data on Friday showing the slowdown in inflation continued in July.
The minutes from the Federal Reserve’s July policy meeting due Wednesday, at which the central bank left its benchmark rate unchanged could offer further insight into the prospect of additional monetary tightening later this year as well as the central bank’s plan to reduce its $4.5tn balance sheet.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Investing.com
