Gold holds above $1,300 after Trump ditches North Korea summit
Spot gold was flat at $1,304.23 an ounce by 8:20 a.m. ET and on track for a weekly gain of 1.1 percent, its biggest since March. U.S. gold futures for June delivery were 0.07 percent lower at $1,303.60.
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 follow through, given that this basically does not have any implication for the global economy or financial markets," he said. "Based on this pattern and on gold's very tight relationship with the U.S. dollar, this uplift in price should be temporary and we should fall back below $1,300 an ounce."
Gold tends to move higher when the U.S. dollar weakens because this makes dollar-priced bullion cheaper for buyers with other currencies. But 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.
Investors were focused on the psychologically important $1,300 level, MKS trader Samuel Laughlin said. "We look to (this) key level as a pivot point for near-term price action," he said.
Gold had been trading in a range between about $1,310 and $1,360 since hitting a 1-1/2 year high in January but was pushed lower this month by a strengthening dollar and rising U.S. bond yields, which reduce the appeal of non-yielding gold.
In other precious metals, silver was down 0.03 percent at $16.621 an ounce, on track for a weekly gain of 1.6 percent. Platinum was 0.07 percent lower at $908.50, up 3.1 percent on the week, while palladium was down 0.21 percent at $972.45 and set for a weekly gain of 1.7 percent.