Gold prices showed a strong move back to the upside during trading on Friday, more than offsetting the pullback seen on Wednesday.
The price of gold for February delivery jumped $11.90 or 0.8 percent to $1,472.70 an ounce after sliding $6.60 to $1,460.80 an ounce in the previous session.
For the holiday-interrupted week, gold for February delivery showed little change, inching up by just 0.1 percent.
The rebound on Friday came as some traders looked to gold as a safe haven amid concerns rising tensions between the U.S. and China over the situation in Hong Kong could impact ongoing trade talks.
After President Donald Trump signed two bills in support of pro-democracy protesters in Hong Kong, a spokesman for China’s Foreign Ministry threatened strong countermeasures.
Foreign Ministry spokesman Geng Shuang accused the U.S. of interfering in China’s internal affairs and violating international law and the basic norms governing international relations.
“China will take strong counter-measures in response to the U.S. behavior that interferes in China’s internal affairs and undermines China’s interests,” Geng said.
“No one shall underestimate China’s determination in safeguarding national sovereignty, security and development interests,” he added. “Nor shall they misjudge China’s resolve in implementing the ‘one country, two systems’ principle and in upholding prosperity and stability in Hong Kong.”
With a fresh round of protests expected over the weekend, the dispute over the situation in Hong Kong could potentially derail the long-awaited phase one trade deal.
The material has been provided by InstaForex Company – www.instaforex.com