2020.05.2818:55:00UTC+00Gold Futures Settle Slightly Higher

Gold futures ended marginally up on Thursday, coming off 2-week lows, due largely to an escalation in tensions between the U.S. and China over Beijing's plan to impose a controversial new security law Hong Kong.

Gold's cause was also supported by massive stimulus plans from the Japanese government and the European Commission, and possibilities of further monetary easing by several central banks across the globe. A section of traders even hope for negative interest rates in the U.S.

Gold futures for August ended up $1.50, or about 0.1%, at $1,728.30, well off the day's high of $1,743.70.

Silver futures for July ended up $0.210 at $17.967 an ounce, while Copper futures for July settled at $2.4135, gaining $0.0315 for the session.

U.S. Secretary of State Mike Pompeo announced on Wednesday that Hong Kong no longer merits special treatment under U.S. law, following Beijing's plan to impose a controversial new security law on the territory.

The declaration could have major implications for Hong Kong's status as a global financial and trading hub.

A punitive U.S. response to China on the issue of Hong Kong may prompt Beijing to take some proportionate countermeasures, further straining ties between the world's two largest economies.

In economic news, the Labor Department's report said initial jobless claims dropped to 2.123 million, a decrease of 323,000 from the previous week's revised level of 2.446 million.

Economists had expected jobless claims to fall to 2.100 million from the 2.438 million originally reported for the previous week.

Meanwhile, the Commerce Department released a separate report showing a substantial decrease in new orders for U.S. manufactured durable goods in the month of April.

The report said durable goods orders plunged by 17.2% in April following a revised 16.6% nosedive in March.

Economists had expected durable goods orders to plummet by 19% compared to the 14.4% slump originally reported for the previous month.

Pending home sales in the U.S. plunged by 21.8% in the month of April, the National Association of Realtors revealed in a report. Home sales plummeted 20.8% in March. Economists had expected pending home sales to slump by 15% in April.