Gold Down Over Escalating U.S.-China Tensions

By Gina Lee

Investing.com – Gold was down in Asia on Monday morning, with escalating U.S.-China tensions continuing to impact demand for even the safe-haven asset.

Gold futures slid by 0.47% at $1,727.40 by 12:26 AM ET (5:26 AM GMT), with the yellow metal unable to hold onto its gains from the previous session.

Stocks, which usually move in the opposite direction to gold, were mixed with Greater China stocks suffering losses on Monday.

Investor risk sentiment was down on Friday after China formally tabled national security laws for Hong Kong and Macau as the National People’s Congress opened on Friday.

Police fired tear gas and a water cannon during protests in Hong Kong on Sunday in reaction to the news.

Tensions between the U.S. and China rose after Chinese Foreign Minister Wang Yi said overnight that the U.S. was inching towards a “new Cold War” with China after U.S. President Trump threatened strong action should the laws be enacted, and the U.S. Commerce Department blacklisted 33 Chinese entities on Friday.