Gold has managed to hold onto a significant chunk of its gains made yesterday despite the U.S. trading conciliatory messages with North Korea again, something which has boosted the global stock markets and the U.S. dollar. This comes after Donald Trump yesterday canceled the June 12 meeting with Kim Jong Un, which triggered a risk-off response in the markets.
Void of any major economic news from Europe or the United States, the dollar rose further first thing this morning while stocks came under some pressure. As the session wore on though, the dollar eased back a little against safe-haven currencies while European equities remained under pressure, undermined by a growing sell-off in Italian bond markets. This has been in response to Italy’s populist parties reaching a deal to govern the country together, which has raised concerns about the nation’s future in the Eurozone.
Global equity markets have attempted to trade cautiously higher at the end of the week, as a combination of soft U.S. inflation figures, stronger commodity prices and slightly easing geopolitical tensions seems to have had a small impact on risk sentiment.