America-China Tension, Gold Even Brightly | Sports Hub

America-China Tension, Gold Even Brightly

Gold prices rose again after a correction. On Wednesday (3/8/2022) trading at 14:38 WIB, the world gold price on the spot market was at US$ 1,766.69 per troy ounce. Up 0.39%.

Gold had strengthened significantly since Wednesday last week until Monday this week. However, gold began to slope since yesterday until this morning.

In a week, gold prices still rose 1.9% point to point. In a month, gold prices still fell 2.3% while in a year it fell 2.4%

America-China Tension, Gold Even Brightly


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 Analyst from DailyFX, Ilya Spivak, said the rise in gold was supported by the situation in Taiwan. The visit of the Speaker of the United States House of Representatives (US) Nancy Pelosi made relations between the US and China heat up. Not only Nancy Pelosi, the US has apparently deployed all of its military fleet, including aircraft carriers and fighter jets, closer to Taiwan.

 Gold is a safe asset sought in times of geopolitical conflict and economic downturns.

 "The market is watching what happens in Taiwan. If geopolitical conditions start to worry then this will help gold move. Gold will go up," Spivak told Reuters.

 It just shines for a while, today's gold price is dimming again:

 Similarly, David Meger from High Ridge Futures also said the strengthening of gold was greatly helped by the issue of US-China tensions. "Nancy Pelosi's visit to Taiwan increased China-US tensions, making gold prices even higher," David told Reuters.

 

Gold had weakened yesterday because the market was again skeptical of changes in the US central bank's policy, The Federal Reserve (The Fed). Initially, the market expected the Fed to relax its aggressive policy once the US entered a recession.

Moreover, Fed Chairman Jerome Powell said the US central bank would consider economic data before setting monetary policy. However, a number of Fed officials warned that the task of curbing inflation was far from over. An increase in the benchmark interest rate is inevitable to suppress inflation.

 "Gold yesterday failed to break the resistance point at US $ 1,785-1,790 per troy ounce because the market is now becoming more skeptical of the Fed's policy reversal," said Spivak.

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