HomeFinancial MarketsGold Gains Persist Amid US-China Geopolitical Tensions

Gold Gains Persist Amid US-China Geopolitical Tensions

With tensions between China and the United States triggering investor anxiety, gold continues to extend its gains, with bullion approaching a four-week high. Spot gold reached $1,788.05 on Tuesday—its highest intraday level since July 5. While silver, platinum, and palladium all gained as well.

Fears of a Chinese offensive against Taiwan have escalated in recent weeks. While anxiety may have subsided following US House Speaker Nancy Pelosi’s visit to Taiwan, tension has begun simmering yet again after China began conducting military drills in the sea surrounding the island.

Going against the grain, gold continued to rise despite Federal Reserve officials pledging to take action in an effort to cool the ongoing soaring inflation. “Gold is pushing higher again this morning as yields ease off this week’s highs and the dollar softens,” Craig Erlam, a senior analyst at Oanda Corp. noted. In his opinion, spot gold could push towards the $1,800 mark.

Rhona O’Connell, an analyst at StoneX, commented that investor sentiment towards bullion may be warming, particularly after a mass selloff in July. “The market will also have noticed that the ETFs are seeing some light buying, which may also influence sentiment,” she explained.

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