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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