Gold has been underpinned during the session, helped by lower US yields and a softer USD. Geopolitics playing a role too, with some strong rhetoric out of China.
China has accused Japan and Taiwan’s ruling Democratic Progressive Party (DPP) of provoking tensions in the Taiwan Strait, with Beijing warning that any external interference will meet firm retaliation. Taiwan Affairs Office spokesperson Peng Qingen said Japan was “stirring up trouble” by engaging more actively on Taiwan-related issues, while alleging that the DPP was working with foreign partners to create instability.
Peng’s remarks were made in response to Taiwan’s “external affairs” chief Lin Chia-lung, who encouraged people in Taiwan to travel to Japan and support Japanese products. Beijing cast the comments as provocative, though Taiwan media noted divided opinions on the island.
Reiterating its long-held position, Beijing said the Taiwan issue remains a domestic matter and that China will “resolutely strike back” against any outside attempts to influence cross-Strait affairs.
This article was written by Eamonn Sheridan at investinglive.com.