Commerzbank: Hong Kong worries underpin gold prices

Singapore (May 22)  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.”

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