May 27 (Reuters) - Gold traded flat on Wednesday as concerns
about the U.S. response to China's proposed security law for
Hong Kong countered optimism about a re-opening of the global
economy.
FUNDAMENTALS
* Spot gold XAU= was unchanged at $1,711.93 per ounce by
1243 GMT after a 1% drop on Tuesday. U.S. gold futures GCv1
were also flat, at $1,705.
* U.S. President Donald Trump said on Tuesday the United
States was working on a strong response to China's planned
national security legislation for Hong Kong and it would be
announced before the end of the week.
* Hong Kong's legislature was surrounded by riot police, as
protests were expected on Wednesday over a bill criminalising
disrespect of China's national anthem and against plans by
Beijing to impose national security laws. * Asian shares shed some of their recent gains on concerns
about rising Sino-U.S. tensions. MKTS/GLOB
* On Tuesday, the U.S. stock benchmark S&P 500 index broke
through the psychologically-important 3,000 level, capping a 37%
stock rally since its March low. * U.S. consumer confidence nudged up in May, suggesting the
worst of the coronavirus-driven economic slump was likely in the
past as the country starts to reopen. * The New York Stock Exchange opened on Tuesday for the
first time in two months. * However, economic prospects for the developed world this
year have darkened again in the past month, with a V-shaped
sharp recovery expected by less than one-fifth of economists
polled by Reuters. * Japan plans to include $302 billion in direct spending
under a second extra budget to be compiled on Wednesday, the
Mainichi newspaper reported. * The dollar index .DXY rose 0.2%, making gold more
expensive for holders of other currencies.
* Palladium XPD= fell 1% to $1,936.99 per ounce and
platinum XPT= slipped 0.5% to $825.62, while silver XAG=
rose 0.2% to $17.13.
DATA/EVENTS (GMT)
0130 Australia Construction Work Done Q1
0645 France Consumer Confidence May