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Gold Holds Steady As Geopolitical Tensions Mount

Gold prices held near four-week highs on Tuesday, as a weaker dollar and lower U.S. Treasury yields boosted demand for the safe-haven metal.

Spot gold edged up 0.1 percent to $1,774.76 per ounce, while U.S. gold futures were up 0.2 percent at $1,790.95.

The dollar was under pressure and U.S. Treasury yields slipped amid easing bets of aggressive Federal Reserve monetary action.

Intensifying geopolitical tensions also helped lift demand for gold.

Investors are worried that a trip by U.S. House Speaker Nancy Pelosi to Taiwan would raise tensions between the world's two economic superpowers.

Chinese foreign ministry spokesman Zhao Lijian said that Pelosi's visit would lead to "very serious developments and consequences". The White House has warned China against turning her visit into a crisis.

Additionally, the United States accused Russia of using Ukraine's biggest nuclear power plant as a "nuclear shield" by stationing troops there, preventing Ukrainian forces from returning fire and risking a terrible nuclear accident.

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