Gold Remains Supported Amid Rising US-China Tensions
Arslan Butt • 1 min read
Gold prices are trading higher early on Friday as markets focus on US-China tensions after China passed the national security legislation on Hong Kong and traders wait to see how the US responds to this later today. At the time of writing, GOLD is trading at a little above $1,719.
Gold prices have come under pressure lately as the sentiment improves on hopes for economic recovery as countries reopen their economies. This has helped stock markets rally higher even as the safe haven appeal of gold diminishes.
However, the yellow metal received some support during the previous session after unemployment claims in the US remained above the 2 million mark for the 10th consecutive week. This has once again raised concerns about the extent of impact of the coronavirus pandemic on the US economy.
Amid disappointing economic data releases, gold prices also remain supported over fears that US-China relations could deteriorate as the US is highly likely to impose sanctions against China in the wake of the latest development on Hong Kong. The US has also announced that it will no longer grant special status to Hong Kong, which could impact its attractiveness as a global financial hub.