By Gina Lee
Investing.com – Gold was up on Thursday in Asia, with rising U.S.-China tensions driving investors to the safe-haven asset.
Gold futures were up by 0.04% at $1,711.35 by 11:55 PM ET (4:55 AM GMT).
Stocks, which usually move inversely to gold, were mostly up on Thursday.
China’s proposed national security laws for Hong Kong and Macau was the latest flashpoint for the two countries, as Hong Kong saw the return of the
U.S. Secretary of State Mike Pompeo said on Wednesday that Hong Kong no longer qualifies for its special status under the U.S. law.
The loss of the special status also threatens Hong Kong’s future as a financial hub.
U.S. President Donald Trump will announce the U.S. response to the laws by the end of the week, with China promising to retaliate against any U.S. actions.
The response could include economic and visa sanctions on entities involved with enacting and upholding the law.
Meanwhile, U.S. Federal Reserve Chair Jerome Powell will take part in an online discussion on Friday.
Investors will be on the lookout for clues on further stimuli measures, as well as the possibility of a negative interest rate.
The Fed also released a report on Wednesday that said U.S. businesses could continue to see the economic impacts of the COVID-19 virus until mid-May.