Gold rebounds on rising tensions between the US and China

Gold rebounds on rising tensions between the US and China

Gold prices rose on Wednesday, supported by escalating tensions between Beijing and Washington, although rising U.S. Treasury yields capped gains on the noninterest-bearing asset and remained below the one-month high reached in the last session.

* By 1029 GMT, spot gold was up 0.1% at $1,761.33 per ounce, after hitting its highest since July 5 at $1,787.79 the day before, before closing lower. 0.6% on the day, breaking a four-session winning streak.

* US gold futures fell 0.6% to $1,778.60.

* “Nancy Pelosi’s visit to Taiwan has not provoked a substantial reaction from Beijing (but) the situation remains tense and supports gold due to its safe haven status,” said Ricardo Evangelista of ActivTrades.

* At the same time, the dollar was beginning to relax, boosting the price of gold, he added.

* A weaker dollar makes gold attractive to foreign buyers.

* In other precious metals, spot silver was down 0.5% at $19.86 an ounce; platinum was down 0.1% at $893.36; and palladium was down 0.6% at $2,050.13.

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