Taiwan’s defence minister stated that the military tensions between Taiwan and China are at their worst in 40 years, warning of a risk of an accidental strike between the two. 

Discover more about how this has affected gold and silver prices in this article.

 

 

The threat has come after China sent about 150 military jets into Taiwan’s air defence zone, last week, for four consecutive days.

After the massive escalation of its military activity directed towards the island, speculation is growing that China will try to mount an invasion.

On Wednesday, Taiwan’s defence minister stated that China is capable now, but would be completely prepared to launch a “full-scale invasion”, in three years time.

 

Why have military tensions escalated between China and Taiwan?

Beijing claims Taiwan as a province of China and regards Taiwan’s democratically elected government as separatists.

Officials have stated that Beijing is becoming more concerned about Taiwan’s government as they are moving the island towards a formal declaration of independence. Beijing is trying to prevent Taiwan from taking any steps in that direction.

The key goal for the Chinese leader, Xi Jinping, is unification. Beijing insists the island will be reclaimed at some point, by force if necessary.

However, Taiwan considers itself a sovereign country with no need to declare independence.

Taiwan holds its own democratic elections, has its own military, currency and free media. Taiwan has celebrated its independence since the end of the civil war in 1949, when the losing Chinese Nationalist Party, Kuomintang, fled to the island.

What has this done to precious metal prices?

 

China and Taiwan Affect on Gold Prices

Gold prices dipped by £2.25 an ounce since the coverage of the speculation between China and Taiwan. At the start of 6th October 2021, gold spot prices were £1,291.81, before following a bullish trend and hit its lowest being £1,287.30 an ounce in the early hours of the morning. However, throughout the day gold prices follow a bearish trend and peaked at £1,300.32 an ounce at 17:00.

Today (7th October 2021) the Gold price has followed a bullish trend, however, encounter a spike of £1,300.25 an ounce around 08:00. Gold prices continued to follow a bullish trend and hit its lowest of £1,289.37 at 15:00 and now (17:00) is stabilising around £1,290.

 

China and Taiwan Tensions Affect on Silver Prices

Silver prices rose by £0.03 an ounce since the coverage of the speculation between China and Taiwan. At the start of 6th October 2021, silver spot prices were £16.61 an ounce before following a bullish trend and hit its lowest being £16.42 an ounce at 11:00. As the day continues, silver prices follow a bearish trend and peaked at £16.65 an ounce at 23:50.

Today (7th October 2021) there have been a few ups and downs as it struggles to stabilise. Silver hit its peak of £16.75 an ounce at 08:00, then fell to £16.57 an ounce at 13:00 and now (17:00) is stabilising around £16.60.

 

 

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