Gold Prices Move Higher as Hong Kong Protests Drive Safe Haven Demand
Investing.com - Gold prices turned higher on Monday in response to political unrest in Hong Kong which dampened risk appetite to the benefit of the safe-haven precious metal.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange, gained $4.70, or 0.3%, to $1,513.15 a troy ounce by 9:28 AM ET (13:28 GMT).
Weekend protests at the Hong Kong international airport reportedly led to the cancellation of all flights, while Beijing said that the ongoing protests are at a “critical juncture” and the violence needs to stop.
According to Chinese state-supported Global Times, China's People's Armed Police assembled in the neighboring city of Shenzhen for "exercises", increasing speculation that Beijing may be preparing to respond with force.
“The news also drove down U.S. equity markets and global bond yields, making gold a more attractive investment,” James Hyerczyk, senior market analyst at FX Empire, said.
Headlines on the U.S.-China trade conflict and its potential negative impact on the global economy have also supported safe-haven demand for gold as markets brace for Washington to implement yet another round of tariffs on Chinese imports on Sept. 1.
“The uncertainty has sent gold soaring and bond yields sharply lower, as market participants seek safety amid heightened concerns that the Federal Reserve will be too slow to adjust to perceptions that a trade war amid slowing world economic growth will disrupt the long expansion we have experienced,” Todd Salomone, senior vice president of Schaeffer’s Investment Research, said in a note.
In other metals trading, silver futures dipped 0.1% to $16.922 a troy ounce by 9:29 AM ET (13:29 GMT).
Palladium futures advanced 0.2% to $1,421.90 an ounce, while sister metal platinum lost 0.4% to $860.10.
In base metals, copper traded up 0.1% to $2.591 a pound.
-- Reuters contributed to this report.
China's People's Armed Police also assembled in the neighboring city of Shenzhen for exercises, the state-backed Global Times newspaper said..
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