Gold up as markets brace for Trump response on Hong Kong

(Reuters) – Gold prices rose on Friday, supported by lingering U.S.-China trade tensions, while market participants cautiously awaited Washington’s response to the Chinese parliament’s approval of a national security law for Hong Kong.

FILE PHOTO: Gold bullions are displayed at GoldSilver Central’s office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
Spot gold was up 0.5% at $1,727.18 an ounce by 1102 GMT. U.S. gold futures rose 0.6% to $1,739.40.

U.S. President Donald Trump is expected to hold a news conference on China later on Friday as his administration moves to pressure Beijing over its treatment of Hong Kong. [nL4N2DA0NH]

“People will be looking for guidance to see whether that could trigger further escalation between the two largest economies. After Trump’s speech, people will also be keen to see China’s response,” said Bank of China International analyst Xiao Fu.