The decline in China-US relations, the reason is Taiwan

Relations between China and America are falling apart as a result of the visit of US House Speaker Nancy Pelosi and Chinese statements are escalating. There is also a large deployment of the Chinese army near the border in Taiwan

The most prominent statements from the Chinese side

Pelosi's visit to Taiwan is a "massive political provocation" and if Washington insists on following the wrong path, it must be responsible for any serious consequences.
The phrase "He who plays with fire will get burned" has also been repeated several times by the Chinese side

The most prominent statements from the American side

Pelosi's visit to Taiwan does not threaten China's sovereignty and its threats will not frighten us, we cannot stand idly by while China continues to threaten Taiwan
America will not abandon Taiwan

Penalties as a result of the event

China began using economic weapons against Taiwan by banning exports, most notably the sand that is used in manufacturing on which the economy depends in Taiwan

How will the news affect the markets?

All eyes are on gold and its movements after geopolitical tensions, as well as being a safe haven in the markets
Gold rose about $ 10 with the statements that took place recently after the arrival of Nancy Pelosi to Taiwan, but we must remember in the scenario of Russia and Ukraine, where a similar scenario may occur between China and Taiwan

For these reasons, the markets witnessed yesterday a negative closing on gold, after the rise it recorded, to close down by $12

A reminder of what happened between Russia and Ukraine

The statements by Russia escalated, which led to great tensions and a fluctuating movement for gold, as it was rising and then erasing its gains after the end of any new statement.

With the start of the implementation of military operations, we are faced with an actual and real scenario on the ground, which prompted investors to resort to gold as a safe haven, which pushed gold to touch its highest levels and exceed the level of $2000 per ounce.

Traders should pay attention to the occurrence of the same scenario and monitor any execution on the ground, which is the main reason for the rise in gold prices above 100$