* Gold will breach $2,000/oz in next 12 months - Citi * Sharp V-shaped recovery for global economy unlikely -poll * For an interactive graphic tracking the global coronavirus spread, open tmsnrt.rs/3aIRuz7 in an external browser (Adds comment, detail about U.S. economic data, updates prices) By Harshith Aranya May 27 (Reuters) - Gold eased to a two-week low on Wednesday on optimism about the reopening of the world economy, though rising Sino-U.S. tensions over Beijing's proposed security law for Hong Kong capped losses. Spot gold was down 0.2% to $1,707.85 per ounce by 0742 GMT, after hitting its lowest level since May 13 at $1,703 earlier in the session. U.S. gold futures were down 0.5% to $1,697.60. "What we saw over the preceding 24 hours was a break of relatively meaningful support at about $1,715," said DailyFx currency strategist Ilya Spivak. "The positive story seems to be easing of restrictions and (that) there will be some sort of rebound in economic activity... but, there is (also) a lot of negativity. Tension between the U.S. and China is a huge risk." U.S. President Donald Trump said on Tuesday Washington was working on a strong response to China's planned national security law for Hong Kong, adding it would be announced before the end of the week. Asian shares slipped as political unrest in Hong Kong rekindled concerns about the disruptive protests seen last year. U.S. consumer confidence nudged up in May and new home sales beat expectations, data showed on Tuesday. Risks for a temporary short-term gold market unwind to a low- to mid-$1,600 level seem to be rising, Citi said in a note, adding that they "remain outright bullish (on) gold over the medium term and forecast that $2,000/oz will be breached in the next 12 (months)". Economic prospects for the developed world this year have darkened again in the past month, with a V-shaped sharp recovery seen as unlikely, a poll by Reuters showed. "The long-term consequences of this lockdown are not going away anytime soon and we aren't going to have the perfect economy," Spivak said. Palladium rose 0.6% to $1,967.72 per ounce, platinum gained 0.2% to $831.16. Silver fell 0.4% to $17.04. (Reporting by Harshith Aranya and K. Sathya Narayanan in Bengaluru; Editing by Devika Syamnath, Rashmi Aich and Subhranshu Sahu)
Our Standards: The Thomson Reuters Trust Principles.