Because if China were to invade Taiwan this would further deepen the chip and storage supply issues, which would cause inflation to go up further. This would in turn increase the risk of the Fed increasing interest rates to strengthen the dollar, which as we know causes gold to fall, as higher interest rates on bonds means money goes there instead of gold. There would also be a strong possibility of the US getting involved, in which case we would again see the dollar soar, as we did with Iran.
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