29.05.202010:17:00UTC+00Gold Ticks Higher Amid US-China Tensions

Gold prices rose on Friday as the Sino-U.S. rift over Hong Kong clouded the outlook for economic recovery.

A raft of weak data from Japan also spurred safe-haven demand for the previous metal.

Spot gold rose 0.4 percent to $1,726.49 per ounce, while U.S. gold futures were up 0.7 percent at $1,725.50.

The Sino-U.S. rift deepened after China's parliament approved the controversial security law on Hong Kong, undermining the city's reputation as a financial hub with substantial autonomy.

U.S. President Donald Trump is expected to hold a news conference about China later today, with investors speculating he may impose mild new sanctions on visas and Chinese access to the global financial system.

Japan's industrial output fell to the lowest level in at least seven years in April and the country's jobless rate hit its highest level in over two years, while retail sales slumped an annual 13.7 percent in the month, underscoring the devastating impact of Covid-19 on the economy.