Gold closed with gains on Tuesday, 2nd. Caution with the geopolitical scenario was present and supported the purchase of the metal, with a focus on the visit to Taiwan by the president of the US House of Representatives, Nancy Pelosi. On the other hand, the strong dollar limited gains, reducing the appetite of holders of other currencies.
Gold for December closed up 0.11% at $1,789.70 a troy ounce on Comex, the metals division of the New York Mercantile Exchange (Nymex).
Today, Pelosi’s visit to Taiwan was in focus. Upon arrival, his office issued a statement, in which the trip signifies a reaffirmation of the American commitment to democracy in Taiwan. China, on the other hand, harshly criticized the initiative, threatening retaliation. The Asian country will hold military exercises in the Taiwan region later this week, and there are doubts about other potential measures Beijing could take to deal with the matter.
In exchange, the dollar strengthened, which reduces the appetite of investors for gold, quoted in the American currency.
Commerzbank also highlighted, in a report to clients, the recent recovery of the metal, which reached highs in four weeks. The bank notes that the move comes after the contract hit 16-month lows.
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