Investing.com - Gold prices turned higher on Monday in response to political unrest in Hong Kong which dampened risk appetite to the benefit of the safe-haven precious metal.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange, gained $4.70, or 0.3%, to $1,513.15 a troy ounce by 9:28 AM ET (13:28 GMT).
Weekend protests at the Hong Kong international airport reportedly led to the cancellation of all flights, while Beijing said that the ongoing protests are at a “critical juncture” and the violence needs to stop.
According to Chinese state-supported Global Times, China's People's Armed Police assembled in the neighboring city of Shenzhen for "exercises", increasing speculation that Beijing may be preparing to respond with force.
“The news also drove down U.S. equity markets and global bond yields, making gold a more attractive investment,” James Hyerczyk, senior market analyst at FX Empire, said.
Headlines on the U.S.-China trade conflict and its potential negative impact on the global economy have also supported safe-haven demand for gold as markets brace for Washington to implement yet another round of tariffs on Chinese imports on Sept. 1.
“The uncertainty has sent gold soaring and bond yields sharply lower," Todd Salomone, senior vice president of Schaeffer’s Investment Research, said in a note. He pointed to "heightened concerns that the Federal Reserve will be too slow to adjust" monetary policy to stem the effects of a trade war and slowing world economic growth.
In other metals trading, silver futures dipped 0.1% to $16.922 a troy ounce by 9:29 AM ET (13:29 GMT).
Palladium futures advanced 0.2% to $1,421.90 an ounce, while sister metal platinum lost 0.4% to $860.10.
In base metals, copper traded up 0.1% to $2.591 a pound.
-- Reuters contributed to this report.