Pelosi is expected to arrive late Tuesday in Taiwan, which China views as its territory. She would be the most senior US politician to visit the island in a quarter century and Beijing has warned of “grave consequences” that could include military action.

Helping bullion’s recovery could also be an end to outflows from gold-backed ETFs after 21 days of uninterrupted withdrawals, according to Commerzbank AG analyst Carsten Fritsch. While ETF holdings were reduced by 94 tons in July — the biggest monthly outflow since March 2021 — investor sentiment may be shifting, he added.

“Recently there were three consecutive days of inflows, which could point to a shift in sentiment among ETF investors,” Fritsch wrote in a note.

Spot gold rose as much as 0.7% to $1,784.59 at 3:28 p.m. in London. The Bloomberg Dollar Spot Index rose 0.4% as platinum edged higher. Silver and palladium declined.