By Gina Lee
Investing.com – Gold was up on Tuesday morning in Asia, gaining back some of its earlier losses.
Gold futures were up by 0.07% at $1,751.50 by 12:10 PM ET (5:10 AM GMT). Stocks, which usually move in the inverse direction to gold, were also up on Tuesday.
Investors were initially cheered by positive data from the world’s two largest economies suggesting that the global economic recovery from COVID-19 was on track. China saw economic expansion as it reported its official manufacturing Purchasing Manager’s Index for May on Monday. The U.S. reported a slight uptick in manufacturing activity from an 11-year low later in the day.
But simmering tensions between the two countries led investors to turn to the safe-haven yellow metal. China halted orders of U.S. soybeans and other agricultural products, as well as cancelling some pork orders on Monday.
Meanwhile, Secretary of State Mike Pompeo said that the U.S. is considering whether to allow Hong Kongers into the country, responding to China’s enactment of national security laws for both Hong Kong and Macau. The U.S. is also dealing with protests in dozens of cities after the death of George Floyd, with President Donald Trump threatening to use military force to quell them.
The protests started over the death of George Floyd, a 46-year-old African American, who died in police custody; and the closely packed crowds have sparked fears of a resurgence of Covid-19, which has killed more than 104,000 Americans.
Meanwhile, investor sentiment was further dampened with disappointing results from Gilead Sciences (NASDAQ:GILD)’s antiviral drug remdesivir, touted as a possible cure for COVID-19. The company said that patients with moderate COVID-19 benefitted modestly after being treated for five days, but the effect was less positive for patients who were treated over ten days.