Gold rises to 6-month high on optimism after China reopens

Gold rises to 6-month high on optimism after China reopens

Gold prices hit on Tuesday its highest level in six monthsas optimism over a decision by top commodity consumer China to further ease Covid-19 restrictions weighed on the dollar, while benchmark US debt yields capped gains.

Spot gold was up 1.1% at $1,817.25 an ounce at 17:33 GMT, after hitting $1,832.99 early in the session, its highest level since June 27.

US gold futures were up 1.3% at $1,828.10.

Gold is following China’s decisions to further ease Covid restrictions,” in anticipation of higher demand from the region and despite rising yields, said Bob Haberkorn, senior market strategist at RJO Futures.

The dollar index fell and benchmark 10-year yields held near their highest levels in more than a month.

Gold has almost won 200 dollars after falling to more than two-year lows in late September, as expectations of slower Fed rate hikes dampened the dollar’s appeal and lowered the opportunity cost of holding bullion, which is not they pay interest.

China, the largest consumer of gold, relaxed quarantine rules at its borderswhich have been largely closed since 2020.

In other metals, spot silver was up 1.1% at $23.98 an ounce, while platinum was steady at $1,021.75.

Palladium rose 3.3% to $1,822.56, after hitting its highest level in more than a week at $1,838.2 in the session on news of China’s opening.

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