China begins military exercises off Taiwan after Pelosi’s visit Bars could rise to $1,800 an ounce, Oanda said.
Cash gold price chart in 1-day intervals
Gold continued to rise amid growing geopolitical tensions between the US and China, which increased the demand for safe assets.
On the spot market, the precious metal quotes near a 4-week high, as the aftermath of US House Speaker Nancy Pelosi’s visit to Taiwan keeps markets on edge. While concerns eased somewhat after the trip ended, China has since begun military exercises in areas surrounding the island. China fired 11 Dongfeng ballistic missiles into the waters surrounding Taiwan in the largest military exercise in decades.
Gold rose in price even after Federal Reserve officials promised that the central bank would continue its aggressive fight to cool soaring inflation. GLD was supported by lower yields of treasuries, which stimulated the decline of the dollar on Thursday.
“Gold is up again today as yields eased from this week’s highs and the dollar weakened,” said Craig Erlam, senior analyst at Oanda Corp. Recession fears could also support gold, as such worries could „trigger a rush into safe haven assets,” he said, suggesting a move above $1,800 an ounce is possible.
According to Rona O’Connell, an analyst at StoneX, investors’ attitudes towards the yellow metal could change after the sell-off in July. However, recent price action is „not much more than a correction after falling in previous months,” she said.
Spot gold rose 1.4% to $1,790.32 an ounce in New York, the highest intraday level since July 5. Gold contracts rose 1.7% on the Comex. All other precious metals rose, with platinum leading the way with a 3.3% gain.