Pelosi's visit to Taiwan causes gold prices to climb

Gold exceeds $1,800 per ounce as Pelosi comes to Taiwan

The cost gold futures contracts for December exceeded $1,800 per ounce for the first time since July 5.

According to New York Stock Exchange COMEX, the price of the precious metal peaked at $1,805 per ounce. Thus, after a long July fall, a new record was set on August 2. As of 17:30 Moscow time, gold was trading at $1,801.7 per ounce.

The price on gold started rising as investors opted to invest in protective assets amid geopolitical tensions, Bloomberg said. The current market trend is associated with Nancy Pelosi's visit to Taiwan. The increase in the price of gold was also affected by growing concerns about the future of global economy against the backdrop of the crisis in Ukraine.

On August 2, amid reports about Nancy Pelosi's visit to Taiwan, Beijing launched military exercises in the Taiwan Strait. In turn, Taiwan increased its combat readiness due to the potential threat.

Any action that either the United States or China could take in relation to Taiwan, could threaten global supply chains, Bloomberg said. The Taiwan Strait is the main shipping route from Asia to the West. The closure of this route could seriously affect global trade relations.

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Author`s name Editorial Team
Editor Dmitry Sudakov