Gold prices hit two-week low on optimism around reopening of economies

Gold prices touched a two-week low on Wednesday due to optimism around reopening of several economies, but increasing Sino-US frictions over Beijing's proposed security law for Hong Kong tempered losses.

Spot gold dipped 0.3 per cent to $1,705.94 per ounce by 0502 GMT, after hitting its lowest level since May 13 of $1,703.40 earlier in the session. US gold futures were down 0.6 per cent to $1,695.80, the Reuters reported.

On Tuesday, gold had dropped as much as 1.3 per cent, to touch $1,707.10, a near two-week low.

"What we saw over the preceding 24 hours was a break of