Shares dip, gold retreats as FOMO buying gets reality check

SINGAPORE: Global shares slipped on Wednesday and gold pulled back sharply from a blistering rally, as stretched valuations came under scrutiny and investors booked profits. Geopolitics loomed large. A planned summit between U.S. President Donald Trump and Russian President Vladimir Putin was put on hold and ambiguity lingered over a potential meeting between Trump and Chinese President Xi Jinping. Despite Washington and Beijing striking a more conciliatory tone in recent times, Trump added to the uncertainty over the meeting on Tuesday, saying that “maybe it won’t happen”. The overnight dive in gold was the main focus for markets, after prices of the yellow metal sank more than 5% on Tuesday despite no obvious catalyst. It last traded 0.6% lower at $4,098.89 an ounce.