(Reuters) – Gold declined on Monday as Japanese equities rose on news of a potential stimulus programme that boosted investors’ risk appetite, though fresh tensions over Hong Kong limited the metal’s fall.

Spot gold fell 0.4% to $1,728.06 per ounce by 0252 GMT. U.S. gold futures were down 0.4% at $1,728.50.

“I think the play into stocks and other risk assets has probably supported the risk appetite, and diminished the appeal for gold in the short term,” said IG Markets analyst Kyle Rodda.

“There still seems to be the broad issue of gold prices trying to break too far above the 1,740, 1,750 mark.”

Gold on Friday rose as much as 0.8% to touch $1,739.51, before paring gains.

Japan is considering fresh stimulus worth over $929 billion, which mostly consists of financial aid programmes for companies hit by the coronavirus pandemic, the Nikkei newspaper said.

Japan’s Nikkei .N225 jumped 1.5% following the report.

Highlighting a return of political uncertainty, thousands rallied on Sunday to protest against Beijing’s plan to impose national security laws on Hong Kong.

The proposed national security legislation for Hong Kong could lead to U.S. sanctions and threaten the city’s status as a financial hub, White House National Security Adviser Robert O’Brien said on Sunday.

Gold is seen as a safe-haven asset during political and economic uncertainties.

Reflecting investor sentiment, SPDR Gold Trust holdings, the world’s largest gold-backed exchange-traded fund, rose 0.4% to 1,116.71 tonnes on Friday.

Palladium gained 0.3% to $1,951.63 per ounce, while platinum was down 1.8% at $824.68 and silver fell 0.5% to $17.09.