Gold Up On Risk Aversion on US-North Korea Summit; but Upbeat GDP Adds Downside Potential

Gold is trading positive on Thursday as investors are digesting the end of the US-North Korea summit with no agreement.

Risk aversion is the tone of the day with global stocks markets negative, while precious metals are up, with gold and silver adding gains.

However, GDP upbeat news is fueling US Dollar, so there is a downside potential for gold too.

What’s going on in markets?

The nuclear summit in Hanoi between Donald Trump and North Korean Leader Kim Jong Un ended abruptly with no agreement.

President Trump left the table as “It wasn’t a good thing to be signing anything,” as the president said.

As reported by CNBC, Trump affirmed North Korea demanded an end of sanctions, something that was off the table.

“They wanted the sanctions lifted in their entirety, and we couldn’t do that.”

On the other hand, India and Pakistan have escalated their belligerence. Actually, Pakistan said it had shot down two Indian aircraft in Pakistani airspace.

India declared they downed a Pakistani jet.

Pakistan and India are both nuclear powers, with India being one of the top countries in the world with the largest gold holdings.

Finally, the market is watching economic data in the United States with the GDP as the main factor.

US annualized GDP came at 2.6%, below expectations of 2.3%. The US Bureau of Economic Analysis also reported that 2018 GDP was 3.1%.

Gold prices up as it finds support at 1,320

XAU/USD is trading positive on Thursday amid risk aversion across the market.

The end of the US-North Korea summit with no agreement and a weak dollar demand sent the metal up.

Gold is currently trading 0.40% positive on the day at 1,325.50, as the XAU/USD found support around 1,320 earlier today.

The pair seems ready to test the 1,330 area again.

AS FX Empire analyst James Hyerczyk suggested in a recent article, gold expectations are for the upside, “but the inside move suggests investor indecision and impending volatility.”

Hyerczyk highlighted GDP as critical data. The report is showing how the US economy worked with the government shutdown.

Silver up as it enters in consolidation mode

Silver is trading positive on Thursday as the pair entered in consolidation mode following the big rejection at the 16.2015 area.

XAG/USD found support around 15.7000, and after a short sideways period, it broke up above 15.7600.

The pair is now testing the 50-day moving average at 15.8300.

Palladium resumes its uptrend

Palladium is trading positive on Thursday after investors took a breath on Wednesday with XPD/USD first negative day since February 21.

Currently, Palladium is trading at 1,552.17, 1.32% positive against the US Dollar.

Pair seems to have found support at 1,520.00, a level that is now working as a leg for its rally.

Oil extends recovery and tests 57.00 level

WTI oil is trading slightly negative on Thursday, but previously, it has logged two positive days that drove the pair from 55.00 to test the 57.00 level today.

In related news, Cyprus government reported that energy conglomerate ExxonMobil had discovered a natural gas deposit with estimations of 5-8 trillion cubic feet of gas.