Gold prices slip but hold above $1,300

BENGALURU (Reuters) - Gold prices eased on Monday amid a firmer dollar, after breaking above $1,300 in the previous session as U.S. President Donald Trump's decision to call off a meeting with North Korean leader Kim Jong Un triggered safe-haven buying.

FUNDAMENTALS

* Spot gold > was down 0.2 percent at $1,302 per ounce at 0100 GMT, after gaining nearly 1 percent in the previous session in its biggest one-day percentage rise since April 11.

* U.S. gold futures for June delivery eased 0.2 percent to $1,301.90 per ounce.

* The dollar index <.DXY>, which measures the greenback against a basket of six major currencies, was up 0.1 percent at 93.846. It was up 0.2 percent versus the yen > after hitting a more than two-week low in the previous session.

 

* Trump on Thursday called off a summit with North Korean leader Kim Jong Un scheduled for next month, citing Pyongyang's "open hostility," and warned that the U.S. military was ready in the event of any reckless acts by North Korea.

* President Trump's threat to impose tariffs on auto imports drew strong criticism abroad and at home where U.S. business groups and members of his own Republican Party warned of damage to the industry and raised the prospect of a global trade war that would harm American interests.

* Nations that remain in the Iran nuclear deal meet on Friday for the first time since U.S. President Donald Trump left the pact, but diplomats see limited scope to salvage it after Washington vowed to be tougher than ever on Tehran.

* Euro zone growth could slow further and uncertainty is on the rise but the bloc's expansion remains solid and broad-based, European Central Bank policymakers concluded in April, the minutes of the meeting showed on Thursday.

* The U.S. Federal Reserve and Bank of England on Thursday urged global financial markets to step up efforts to shift from the scandal-plagued Libor reference rate to alternative interest rate benchmarks.

* Polyus , Russia's largest gold producer, said on Thursday 2018 production was likely to be at the upper end of its forecast range of 2.375-2.425 million troy ounces.

DATA/EVENT AHEAD (GMT)

0800 Germany Ifo business climate May

0830 UK GDP 2nd release Q1

1230 U.S. Durable goods Apr

(Reporting by Karen Rodrigues in Bengaluru)