Gold prices gain amid political unrest in Hong Kong
On Tuesday gold prices gained in Asia amid continuing political unrest in Hong Kong and uncertainties surrounding the Sino-U.S. trade war.
Political unrest in Hong Kong which saw the city’s airport canceled all flights on Monday and Sino-U.S. trade concerns sent Asian stocks lower today and provided support to the safe-haven gold. In a conference on Monday, Beijing said that the ongoing protests are at a “critical juncture” and the violence needs to stop. Protestors also held a press conference on the same day, blaming police for using excessive force as they fired tear gas and bean bag pellets at close range.
Gold futures were up 0.6% to $1,527.05 by 1:25 AM ET (05:25 GMT).
Traders also paid attention to news on the Sino-U.S. trade developments, as on Tuesday the People's Bank of China lowered its official yuan midpoint for the ninth straight day to 7.0326 per dollar.
Another round of in-person trade talks are scheduled on next month, but U.S. President Donald Trump said earlier this week that it is “fine” if the meeting is called off, and he was “not ready” to make a deal with Beijing.
The yuan had become a focal point since last week when Beijing allowed the currency to fall below 7 per dollar. In response, Washington officially labels Beijing as a currency manipulator and escalated their ongoing trade war.
Meanwhile, the U.S. Federal Reserve annual symposium at Jackson Hole later in the week will be in focus, as traders hope to get some clarity on the future path of interest rates.