Gold holds gains near 1-1/2 week peak amid U.S.-China tensions

Gold prices declined, halting a 4-day winning streak amid signs of economic recovery as more countries eased lockdown restrictions. However, concerns around U.S.-China relations and rising violent protests in the United States pinned the metal near 1-1/2 week peak hit in the prior session.

Spot gold was trading 0.2 percent down at $1,737.13 per ounce by 0652 GMT, having touched a high of $1,744.69 on Monday, its highest since May 21. U.S. gold futures rose 0.2 percent to $1,753.70.

U.S. President Donald Trump stated he would deploy the military, if required to end unrest in major cities across the nation. The demonstrations started over the death of George Floyd, a 46-year-old African American, who died in police custody; after being pinned beneath a white officer’s knee for nearly nine minutes.

Bullion was also supported by reports of an order from China’s government to halt U.S. soybean purchases, raising the spectre of damaging trade disagreements between Washington and Beijing. The U.S. threatened to revoke Hong Kong’s special status after China proposed security law for Hong Kong.

The safe-haven metal has gained in the previous three sessions, hitting its highest on Monday since May 21, despite some optimism about economies gradually reopening. Investors continue to track developments surrounding U.S.-China relations for further directions.