PRECIOUS-Gold gains as uncertainty over Trump's response to China spurs demand

* Gold up more than 3% so far for May
* Silver hits peak since Feb. 27 at $17.90/oz
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Eileen Soreng
May 29 (Reuters) - Gold rose 1% on Friday as caution set in
with investors awaiting U.S. President Donald Trump's response
to a Chinese national security law for Hong Kong and its
potential impact on an already fragile global economy.
Spot gold XAU= climbed 0.9% to $1,734.70 per ounce by 1:44
p.m. EDT (1744 GMT).
U.S. gold futures GCv1 settled up 1.4% at $1,751.70.
"Markets are now strictly focused on the two largest
economies and what is likely going to be a long, drawn-out
battle," said Edward Moya, a senior market analyst at broker
OANDA.
"You're going to continue to see safe-haven demand (for
gold) because the uncertainty over how the U.S.-China tensions
are going to play out is extremely high."
Trump is expected to hold a news conference on China later
on Friday as his administration moves to pressure Beijing over
its treatment of Hong Kong. Mounting fears over the economic toll from the coronavirus,
exacerbated by the widening U.S.-China rift, and a resultant
environment of low interest rates globally have put safe-haven
bullion on track for an over 3% monthly gain.
"Stock market gains are likely to cap gold's upward
momentum, however, gold prices have risen amid a risk-on
environment and a risk-off environment," said Standard Chartered
Bank analyst Suki Cooper. "There is good downside support around
$1,700 and resistance around $1,765."
Wall Street's main indexes fell on Friday, bolstering gold's
appeal. .N
Elsewhere, silver XAG= gained 2.5% to $17.86 an ounce.
Prices were up 18.8% for the month, the biggest gain since
January 2012.
Global efforts to restart economies could boost silver
demand, making prices of the metal, which slipped to an all-time
low relative to gold during the crisis, likely to rebound
strongly. Palladium XPD= fell 1% to $1,911.54 an ounce. Platinum
XPT= slipped 0.8% to $831.90 but was on track for its best
month since August 2019.