Gold prices rise amid rising COVID-19 cases and Hong Kong national security laws announcement

Gold prices rose earlier on Monday in Asia, reaching its highest since May as fears of a second wave of COVID-19 cases continued to dampen hopes of a quick economic recovery.

The World Health Organization on Sunday reported a record 180,020 cases, adding up to the near 9 million COVID-19 cases globally as of June 22 reported by Johns Hopkins University.

Gold futures gained 0.85% to $1,767 at 12:20 AM ET (05:20 AM GMT) as investors flocked to the safe-haven metal.

Investor sentiment soured after 2 U.S. Federal Reserve officials warned that the U.S. could see its unemployment rise again if the pandemic was not contained soon.

Meanwhile, geopolitical developments bolstered the yellow metal with China announcing details for the national security laws the nation plans to implement in Hong Kong and Macau. On Sunday, Beijing revealed that it will broaden its powers to enforce its laws, which could be enacted sooner than expected.

The National People’s Congress Standing Committee announced that they would be meeting for a second time from June 28 to 30 after concluding its bi-monthly meeting over the weekend.