Geopolitical fears also prod XAU/USD buyers

Not only the looming fears of the economic slowdown that recently challenged the Gold buyers, but escalating geopolitical fears surrounding the US, China, Russia and North Korea also seem to poke the XAU/USD prices.

China’s criticism of the US-Taiwan ties and dislike of the White House competition hints at worsening relations among the world’s top two economies, namely the US and China. The same should weigh on the Gold price considering China’s status as one of the world’s biggest Gold consumers, as well as due to the likely US Dollar’s haven demand.

In addition to the US-China tension, the Ukraine-Russia war and Moscow’s tussle with the West, as well as North Korea’s warning to use nuclear powers, also roil the geopolitical context and prod the Gold buyers.

De-dollarization, downbeat greenback allow Gold price to remain firmer

In contrast to the aforementioned catalysts, the latest moves in the market against the US Dollar’s reserve currency status seem to allow the Gold price to stay on the bull’s radar amid the downbeat greenback.

Russia’s latest likes for the Chinese Yuan and the China-Brazil pact to ignore the US Dollar as an intermediate currency are a key news that recently challenges the greenback’s imperial status.

Adding strength to the Gold’s likelihood are the chatters that some of the US Congressmen have proposed a Gold Standard Restoration Act to defend the US Dollar. The bill suggests re-pegging the greenback with a fixed amount of the Gold’s weight, like it was before 1971.