Fundamental Comment

Gold hits two-week low amid reopening optimism

Gold hits two-week low amid reopening optimism

Gold prices fell during trading on Wednesday due to the return of optimism about the reopening of several economies, despite the intensification of US-China differences over a security law proposed by Beijing regarding the issue of Hong Kong.

As of 09:16 GMT, spot gold hovered around $1,705.31 an ounce, witnessing a 0.39 percent decrease, where the precious metal touched its lowest level during the session at $1,704.52, which is the lowest since May 13.

The decline in precious metals came as a result of increased optimism among investors due to the facilitation measures taken by several economies after the long period of lockdown.

However, the losses were limited due to the concerns associated with the escalation of Sino-US tensions again after hints from the US side to impose sanctions on Beijing.

China said over the weekend that it was on the brink of a cold war with the United States.

For his part, US President Donald Trump has announced that Washington is reacting strongly to the National Security Act, which China plans to enact for Hong Kong, adding that it will be unveiled before the end of the week.

Meanwhile, the dollar index, which trails the performance of the green currency against six major currencies, was lower at 98.80, the lowest since March 30.

As for other precious metals, silver ascended by 0.25 percent to $17.17 an ounce, while the highest level recorded during the session was at $17.26.

Palladium edged up 0.40 percent to trade at $1,994.70 an ounce, while platinum went in the opposite direction by slumping 0.05 percent at $873.05.

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