Gold climbs to four-month high as reopening bets weaken dollar

Gold climbed to its highest intraday level since August as the dollar slipped, with traders buoyant as China removes some Covid Zero restrictions.

Chinese authorities have accelerated a shift toward reopening the world’s second-largest economy, with Shanghai and Hangzhou easing some restrictions after protests against the nation’s stringent policies.

Bullion had been hurt by the Federal Reserve’s rate hikes this year.

Recent indications that the central bank is becoming less hawkish have boosted the metal, pushing it past $1,800 an ounce last week.

While the precious metal slipped below that level after Friday’s US jobs report, bets on China’s reopening drove the greenback lower and further propped up prices on Monday.

Gold tends to have a negative correlation with the dollar and rates as it does not bear interest and is priced in the US currency.

Spot gold climbed 0.5 per cent to $1,807.10 an ounce as of 10:35 a.m. in Singapore, and is trading at its highest intraday price since August 10.

The Bloomberg Dollar Spot Index declined by 0.3 per cent and is near a five-month low. Palladium, silver and platinum climbed.

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