Trump cancels North Korea summit
In a classic Donald Trump move, the president wrote a letter to North Korean leader Kim Jong-un to cancel their planned meeting in Singapore next month. Trump wrote, “Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it would be inappropriate, at this time, to have this long-planned meeting.” This meeting was seen as an unprecedented attempt to dissolve tensions between the United States and North Korea, which could have reduced geopolitical risks.
Stocks lose, gold shines
All the US equity indices are trading in the red, with the SPDR S&P 500 Index (SPX)(SPY), the Dow Jones Industrial Average Index (DIA)(DOW), and the NASDAQ Composite (QQQ) down 0.73%, 0.80%, and 0.73%, respectively. The SPDR Gold Shares ETF (GLD), which tracks physical gold, on the other hand, was trading up 1.03%.
Geopolitical concerns create uncertainty in the markets—a perfect environment for gold to thrive. US Treasuries (TLT) were also gaining on safe-haven bids.
Sentiment turning sour
Market sentiment was already bearish, given the possible imposition by the Trump administration of new tariffs on automobile parts. As earnings season for the US markets comes to a close, investors are again focusing on geopolitical concerns, and Trump’s policy flip-flops aren’t helping.
See Could the Recent Pullback in Gold Be a Buying Opportunity? for more on the gold price outlook. And check out all the data we’ve added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!