Gold prices fall as U.S.-China tensions mount

Gold fell earlier on Thursday in Asia, losing a portion of its earlier gains amid escalating tensions between China and the United States.

Investors flocked to the yellow metal on Wednesday after the U.S. suspended flights by Chinese airlines into the country with effect from June 16. Washington’s decision came after China had barred American carriers from re-entering China.

Tensions simmered between the two countries after China approved national security laws to be implemented in Hong Kong and Macau at the end of May.

Gold futures lost 0.08% at $1,703.40 per ounce at 12:40 AM ET (5:40 AM GMT), after it had fallen by 2% in the previous session.

Stocks, which are often observed to move inversely to gold, were mixed on Thursday.