Gold Rises on China’s Covid Shift, Signs of Cooler US Inflation

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(Bloomberg) — Gold rose — trading above $1,800 an ounce — as China swept away more of its Covid-19 controls, piling pressure on the dollar as risk assets gained.

China will no longer subject inbound travelers to quarantine from early January, adding to the rapid rollback of strict pandemic rules and boosting sentiment toward Asia’s biggest economy.

  • Markets are also digesting US data on Friday that pointed to softer inflation and slower consumer spending, which could ease pressure on the Federal Reserve for more rate hikes
  • Gold has gained more than 8% this quarter, helped by the greenback’s retreat and hopes that the Fed will slow aggressive monetary tightening
  • Spot gold rose 0.4% to $1,804.60 an ounce as of 9:51 a.m. Shanghai time on Tuesday; the Bloomberg Dollar Index dropped 0.3% and is close to its lowest since June. Silver, palladium and platinum were all higher

©2022 Bloomberg L.P.

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