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.

Spot gold was unchanged at $1,711.93 per ounce by 1243 GMT after a 1% drop on Tuesday. U.S. gold futures 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 criminalizing disrespect of China’s national anthem and against plans by Beijing to impose national security laws.

Source : Reuters