Gold Up on Back of Mounting U.S.-China Tension

By Gina Lee

Investing.com – Gold was up in Asia on Friday, building on its gains from the previous session as tensions between the U.S. and China continue to mount up.

The latest flashpoint for the two countries is China’s national security laws, with the National People’s Congress approving the enactment of the laws in Hong Kong on Thursday.

U.S. President Donald Trump will announce the U.S. response later in the day, with the U.S. potentially slapping economic and visa sanctions on Chinese entities involved with the laws.

Gold futures were up by 0.29% at $1,718.25 by 12 PM ET (5 AM GMT), with investors turning to the safe-haven yellow metal as risk sentiment soured.

Stocks, which usually move inversely to gold, were mostly down on Friday.

Meanwhile, U.S. Federal Reserve Chair Jerome Powell is scheduled to participate in a virtual discussion later in the day. Investors will be watching for clues about further stimulus measures as well as the potential for negative interest rates.