Gold prices steadied on Friday, May 25, after breaking above $1,300 an ounce in the previous session when U.S. President Donald Trump called off a meeting with North
Spot gold was flat at $1,304.84 an ounce at 0944 GMT but on track to end the week up 1 percent for its biggest weekly gain since March.
U.S. gold futures for June delivery were also unchanged at $1,304.40.
Gold is traditionally used as a safe place to park assets in times of uncertainty, but Trump’s decision would have limited impact on prices, said Julius Baer analyst Carsten Menke.
“This is pretty typical for these kinds of geopolitical jitters. Very short-term sharp reaction, then a lack of follothrough, given that this basically does not have any implication for the global economy or financial markets,” he said.
Gold tends to move higher when the U.S. dollar weakens because this makes dollar-priced bullion cheaper for buyers with other currencies, Reuters reports.
After losing ground on Thursday the dollar strengthened with support from a North Korean statement that it was open to resolving issues with the United States.
Gold had been trading in a range between about $1,310 and $1,360 since hitting a 1-1/2 year high in January.
In other precious metals, silver was up 0.1 percent at $16.64 an ounce, on track for a weekly gain of 1.3 percent.
Platinum was 0.3 percent down at $906.24, up 2.7 percent on the week, while palladium was flat at $974.55, but set to finish with a weekly gain of 1.2 percent.
