Gold slipped on Monday as the dollar strengthened against the yen, with the greenback buoyed by a smooth meeting between U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe that saw no mention of currency policy.    

Spot gold had fallen 0.31 percent to $1,230.22 per ounce by 0608 GMT, while U.S. gold futures were down 0.36 percent at $1,231.3.    

The dollar briefly touched its highest since Jan. 30 at 114.17 yen, with relief that Trump set aside his tough campaign rhetoric over security and jobs in a meeting with the Japanese Prime Minister over the weekend.                

“Quietness on the protectionism front and a rekindling of the Trump-flation trade is taking the wind out of gold’s safe-haven sails,” said Jeffrey Halley, senior market analyst at OANDA.    

A senior Japanese government spokesman said Abe and Trump did not discuss currency issues and that Trump did not request a bilateral trade deal.                 

The U.S. currency also found broad support from comments by Trump on Thursday that he planned to announce an ambitious tax reform plan in the next few weeks, rekindling hopes for big tax cuts. The dollar index was firm at 100.820.    

Spot gold may revisit its Feb. 10 low of $1,221.02 per ounce, according to Reuters technical analyst Wang Tao.                  

However, political risk from elections in Europe and worries over Trump’s policies will maintain underlying safe-haven appetite for the metal, traders said.    

“Prices are likely to recover again, even though there may be slight corrections,” said Hareesh V, research head at Geofin Comtrade Ltd.    

“Global uncertainty from the U.S., Europe and on the Korean front will drive global prices high again as prices couldn’t break the December-low,” he added.    

Gold has rallied nearly 10 percent after touching its lowest in over 10 months, at $1,122.35 an ounce, in December, following the U.S. Federal Reserve‘s move to raise interest rates for the first time in a year.    

North Korea said on Monday it had successfully test-fired a new type of medium- to long-range ballistic missile, claiming further advancement in a weapons programme it is pursuing in violation of United Nations resolutions.  

Source: Reuters UK

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