Gold prices rise amid U.S.-China tensions, but the metal is looking at a weekly decline
“Gold prices headed higher on Friday as testiness between the U.S. and China drew investors into assets considered havens, including government debt and the Japanese yen.
However, continuing plans to reopen economies that have been frozen by the COVID-19 pandemic and hope for remedies has limited the upside in precious metals, experts said
“The heightened uncertainties in the markets are causing further ventures into riskier waters to pause for breath, after what has been a bumpy ride for risk assets this week,” wrote Han Tan, market analyst at FXTM, in a Friday research note.
“Gold is climbing back towards the $1730 handle and the Yen is advancing against all of its G10 and Asian peers,” he wrote.”
Gold prices up on safe-haven bid amid rising China tensions
“Gold and silver prices are trading higher in early U.S. dealings Friday, on safe-haven buying after fresh developments in China have sapped investor and trader risk appetite heading into a long U.S. holiday weekend. June gold futures were last up $15.50 an ounce at $1,737.70. July Comex silver prices were last up $0.276 at $17.645 an ounce.
Global stock markets were also mostly lower in overnight trading. U.S. stock indexes are pointed toward lower openings when the New York day session begins. U.S.-China tensions remain high. A new geopolitical element thrown into the mix is China’s threat to impose new national security laws in Hong Kong to thwart protesters there. Hong Kong’s main stock index, the Hang Seng, saw its worst day in nearly five years Friday—down over 5%.”
Gold gains as US-China tensions boost safe-haven demand
“Gold prices rebounded on Friday as escalating tensions between the United States and China lifted bullion’s safe-haven appeal, though a stronger U.S. dollar kept gains in check.
Spot gold was up 0.4% at $1,732.60 per ounce, after falling 1.4% on Thursday. U.S. gold futures rose 0.7% to $1,734.
U.S.-China tensions have risen in the past few weeks over the source of the coronavirus pandemic, and China’s proposal on Thursday to impose security laws on Hong Kong prompted a strong warning from U.S. President Donald Trump.”