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Gold Prices Mixed On Hawkish Fed Comments

Gold prices traded mixed on Wednesday amid heightened U.S.-China tensions and signs of slowing economic growth worldwide.

Spot gold edged up 0.2 percent to $1,764.94 per ounce, while U.S. gold futures were down half a percent at $1,780.45.

Tensions between the U.S. and China mounted as U.S. House Speaker Nancy Pelosi arrived in Taiwan and batted for the country's freedom.

China imposed trade sanctions against Taiwan and summoned the American envoy to Beijing to lodge a stern protest.

Terming the situation 'extremely dangerous', Beijing announced six exclusion zones encircling Taiwan to facilitate live-fire military drills from Thursday to Sunday.

Russia has called Pelosi's visit a 'clear provocation' aimed at containing China.

Meanwhile, U.S. Treasury yields inched higher after a trio of Fed policymakers talked up the potential for further, aggressive interest-rate hikes.

Chicago Fed President Charles Evans told reporters on Tuesday that the central bank can raise its benchmark interest rate by half a percentage point in September, but a 75-bps move could be okay.

San Francisco Fed President Mary Daly said that the central bank still has work ahead to combat inflation.

Loretta Mester, president of the Cleveland Fed, said that inflation hasn't even peaked yet and the Fed has further to go on raising interest rates.

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