Gold gains as U.S. bill backing HK protesters fuels trade deal doubts

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Gold rose on Thursday as investors bought the safe-haven metal amid new doubts about whether the United States and China will sign a trade deal after President Donald Trump signed legislation supporting protesters in Hong Kong, irking Beijing.

FUNDAMENTALS

Spot gold was up 0.2% to $1,457.60 per ounce by 0132 GMT. U.S. gold futures rose 0.2% to $1,456.30.

Palladium shed 0.5% to $1,824 per ounce, giving up some gains after hitting an all-time peak at $1,836.61 on a supply deficit.

Asian share markets wobbled, while the safe-haven yen rose against the dollar, after Trump's move to sign into law congressional legislation backing Hong Kong protesters fuelled concern that efforts to end the long-running trade dispute between the world's two biggest economies could become more complicated.

U.S. economic growth picked up slightly in the third quarter, while the number of Americans filing applications for unemployment benefits fell last week.

New orders for key U.S.-made capital goods increased by the most in nine months in October and shipments rebounded, suggesting some stabilization in business investment.

China will speed up reforms to help build a market-based, globalised business environment and break investment barriers for all kinds of companies, Premier Li Keqiang was quoted as saying during a Cabinet meeting on Wednesday.

Japan's retail sales tumbled at their fastest pace in more than 4-1/2 years in October as a sales tax hike prompted consumers to cut spending.

Platinum was up 0.2% to $894.24 and silver rose 0.3% to $17 per ounce.

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(Reporting by Sumita Layek in Bengaluru; Editing by Kenneth Maxwell)