May 28 (Reuters) - Gold prices rose on Thursday as tensions
between the United States and China over a Hong Kong security
law escalated, while fresh stimulus measures by several
economies to mitigate the coronavirus fallout also lent support.
FUNDAMENTALS
* Spot gold XAU= was up 0.2% at $1,711.35 per ounce, as of
1250 GMT, after touching a two-week low on Wednesday. U.S. gold
futures GCv1 fell 0.2% to $1,723.60.
* U.S. Secretary of State Mike Pompeo said Hong Kong no
longer qualifies for its special status under the U.S. law,
dealing a blow to its status as a financial hub. * U.S. President Donald Trump has a long list of possible
responses to China's plans to impose a national security law on
Hong Kong, including visa and economic sanctions, said David
Stilwell, assistant Secretary of State for East Asia.
* The European Union unveiled a 750 billion euro ($826.13
billion) plan on Wednesday to prop up economies, lifting the
demand for safe-haven assets such as gold. * Stimulus measures to limit the economic damage have
supported gold, which is often considered a hedge against
inflation and currency debasement.
* Japan approved a fresh $1.1 trillion stimulus package;
while sources said India may need to pump nearly $20 billon into
its state banks. * A Federal Reserve report on Wednesday implied that U.S.
businesses continued to be hammered into the middle of May.
* SPDR Gold Trust GLD holdings, the world's largest
gold-backed exchange-traded fund, rose 0.2% to 1,119.05 tonnes
on Wednesday. GOL/ETF
* Palladium XPD= rose 0.2% to $1,938.76 per ounce and
platinum XPT= gained 1.9% to $834.19, while silver XAG= fell
0.4% to $17.24.
DATA/EVENTS (GMT)
0900 EU Consumer Confid. Final May
1200 Germany CPI Prelim YY May
1230 US GDP 2nd Estimate Q1
1230 US Initial Jobless Claims Weekly
($1 = 0.9079 euros)