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Trump Stopped Pushing Kim for Denuclearization

By:
Marios Athinodorou
Published: Jun 6, 2018, 12:11 UTC

Donald Trump the President of the United States of America recently shifted his strict position about the denuclearization of North Korea.

North Korea-USA

The immediate denuclearization is no longer on Washington’s agenda and many are wondering if President Donald Trump will keep his noticeably softened tone next week in Singapore, and if he is going be able to achieve the promise “complete, verifiable, and irreversible denuclearization’ in a short period of time”.

More than a week after the cancelation of the June 12 summit on Friday the President of the United States of America told reporters that he confirms his return to the table for the deal on denuclearization in stages via multiple meetings.

President Trump said “We’re not going to go in and sign something on June 12 … We’re going to start a process,”

This dramatic change of President Trump, who was previously very strict and asked North Korea to surrender its weapons is now giving a tone of fear by changıng his approach. On the global geopolıtıcal scale, once again he has shaken the waters of stability, but at the same time, he has created a hope for a historical Agreement between the two leaders.

Another pullback from Trump was the fact that he stopped using the term “maxımum pressure” which ındicates that he no longer applies diplomatic sanctions and mılitary threats to North Korea.

“We’re getting along, so it’s not a question of maximum pressure,” Trump said on first of June.

Tom Collina, director of policy at Ploughshares Fund which is a public foundation against nuclear weapons said that Trump is now recognizing the reality of the situation.

“Trump is still pushing for denuclearization, as he should, but he now has more realistic expectations for how long it will take,” and add “as long as the North is not conducting nuclear and missile tests, there is no rush.”

Trump’s new diplomatic approach seems to be more in line with Kim’s preferences which rely on the more long-term process of disarmament. This approach may drive the process to more concessions like sanctions relief and security guarantees.

One probable danger of the long-term process may be the diplomatic and the global uncertainty that may drive the financial sector into a panic, meaning that investors may withdraw their investment and look for safe-haven assets.

Gold Technical View

Based on the Ichimoku system price and tekansen, kijunsen, chikou span are below the cloud.

The price for now based on Ichimoku seems to be bearish but to be able to find any potential signals price must bounce on kijun sen.

Gold Daily Chart
Gold Daily Chart

This article was written by Marios Athinodorou, TeleTrade’s market analyst, and commentator. Among others, Marios is delivering weekly trading webinars. Sign up for upcoming webinars here.

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