The US dollar fell to its lowest level since June.
The dollar fell, traders rallied, and gold reached its highest level since June. China’s relaxation of some COVID-Zero restrictions helped.
Following protests against the nation’s strict policies, Shanghai and Hangzhou have loosened some restrictions, and Chinese authorities have accelerated the process of reopening the second-largest economy in the world.
The Fed’s aggressive rate hike has taken a toll on gold.
The Fed’s rapid rate increases this year have hurt gold. The price of the metal surpassed $1,800 per ounce last week on recent indications that the central bank is becoming less hawkish.
On Monday, the dollar fell as a result of bets on China’s reopening, and gold prices increased because they are negatively correlated with the dollar and because they are priced in US dollars and do not pay interest.
In Singapore’s morning trading, spot gold increased 0.6% to $1,808.64 an ounce, reaching its highest price since early July.