(Kitco News) – Gold prices are stronger early Friday, underpinned news of a Chinese proposal to impose national security laws in Hong Kong, said Commerzbank. The metal is bouncing back after a sell-off on Thursday. As of 7:47 a.m. EDT, spot gold was $7.40 higher to $1,734.90 an ounce. “While it was growing economic optimism that was weighing on its price yesterday, market sentiment has become considerably more gloomy overnight,” said Commerzbank analyst Cartsen Fritsch. “One contributing factor [is] the Chinese government’s plans for a new security law for Hong Kong. This could spark renewed protests in the former British crown colony, causing the already fraught relationship between China and the U.S. to deteriorate even further. The U.S. has already responded to Beijing’s announcement with a harsh warning.”
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.