Gold Prices Edge Higher On Doubts Over US-China Trade Deal

Gold's appeal as the safe-haven metal revives as investors doubt the signing of the trade deal between the US and China after American President Donald Trump signed legislation in support of Hong Kong protestors.

Gold futures on MCX were trading 0.35 percent or Rs 132 higher on Thursday at Rs 37,657 per 10 grams. In the international market, spot gold was was up by 0.1 percent at $1,456.22 an ounce while US gold futures were trading 0.1 percent higher at $1,455.20.

Trump signed the Hong Kong Human Rights and Democracy Act of 2019 into law. According to the bill, the State Department would be required to certify once a year that Hong Kong is sufficiently autonomous to retain its special US trading consideration. He also signed another bill banning the sale of munitions like tear gas and rubber bullets to Hong Kong police.

Few hours after the signing, on Thursday, China's Ministry of Foreign Affairs released an official statement.

As per CNBC's translation of an online-Chinese language statement, the office said, "We are officially telling the US and the handful of opposition politicians in Hong Kong who follow America's lead to not underestimate our determination to protect Hong Kong's prosperity and stability, don't underestimate our belief to protect the 'one country, two systems policy' and don't underestimate our capabilities and strategies in protecting our country's sovereignty, safety, growth and rights."