PRECIOUS-Gold flat ahead of Trump's Hong Kong response

* Gold up 2% so far this month, but down for week
* Silver eyes biggest monthly gain in about 4 years
* Trump press conference awaited
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser

(Recasts with updated prices)
By Harshith Aranya
May 29 (Reuters) - Gold traded flat on Friday as investors
stayed away from taking big positions while awaiting the U.S.
response to China's passage of a national security law for Hong
Kong.
Spot gold XAU= was unchanged at $1,718.60 per ounce by
0616 GMT. U.S. gold futures GCcv1 rose 0.2% to $1,716.50.
"Gold remains wedged between potentially positive economic
developments that have been dragging prices lower, and a rise in
geopolitical tensions with China over Hong Kong," said Cameron
Alexander, an analyst with Refinitiv-owned metals consultancy
GFMS.
The world's top two economies have traded blows over Hong
Kong this week, and China's parliament on Thursday pressed ahead
with its national security legislation for the city, leading
U.S. President Donald Trump to vow a tough response. Trump will
hold a news conference on China later in the day. Gold was down for the week as more countries around the
world eased lockdown measures and fuelled hopes for an economic
recovery, although worsening U.S.-China relations kept the metal
on track for a monthly gain of about 2% for the month.
Central banks increasing liquidity in financial markets, low
interest rates and rising money supply are bullish for gold in
the longer term, Phillip Futures wrote in a note.
Elsewhere, silver XAG= fell 0.2% to $17.38 per ounce, but
was poised for its biggest monthly gain since June 2016.
Palladium XPD= gained 0.8% to $1,945.80, but was set for a
third straight monthly fall. Platinum XPT= declined 0.2% to
$836.36, but was on track for a second monthly gain.