Published on 29/05/2020 2:20:55 PM | Source: Reuters

Gold flat ahead of Trump`s Hong Kong response

Posted in Commodity Top News| #Gold #Commodity #Hong Kong #Donald Trump

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By Harshith Aranya

Gold traded flat on Friday as investors stayed away from taking big positions while awaiting the U.S. response to China's passage of a national security law for Hong Kong.

Spot gold was unchanged at $1,718.60 per ounce by 0616 GMT. U.S. gold futures rose 0.2% to $1,716.50.

"Gold remains wedged between potentially positive economic developments that have been dragging prices lower, and a rise in geopolitical tensions with China over Hong Kong," said Cameron Alexander, an analyst with Refinitiv-owned metals consultancy GFMS.

The world's top two economies have traded blows over Hong Kong this week, and China's parliament on Thursday pressed ahead with its national security legislation for the city, leading U.S. President Donald Trump to vow a tough response. Trump will hold a news conference on China later in the day.

Gold was down for the week as more countries around the world eased lockdown measures and fuelled hopes for an economic recovery, although worsening U.S.-China relations kept the metal on track for a monthly gain of about 2% for the month.

Central banks increasing liquidity in financial markets, low interest rates and rising money supply are bullish for gold in the longer term, Phillip Futures wrote in a note.

Elsewhere, silver fell 0.2% to $17.38 per ounce, but was poised for its biggest monthly gain since June 2016.

Palladium gained 0.8% to $1,945.80, but was set for a third straight monthly fall. Platinum declined 0.2% to $836.36, but was on track for a second monthly gain.

(Reporting by Harshith Aranya and K. Sathya Narayanan in Bengaluru; Editing by Subhranshu Sahu)