(Bloomberg) -- Gold steadied after earlier touching the highest level since July as traders weighed more US economic data and China's relaxation of its strict Covid-Zero policies.
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Bullion had been hurt by the Fed's aggressive rate hikes this year, but recent indications that the central bank is becoming less hawkish have boosted the metal, pushing it past $1,800 an ounce last week. Attention is focused on how high the central bank will take its interest rates, with policymakers expected to opt for slower tightening this month.
On the slate Monday are US purchasing managers indexes and durable goods orders, which will be scrutinized for signs demand is slowing. Traders are also watching China's accelerating shift toward reopening, with Shanghai and Hangzhou easing some restrictions after protests against the nation's stringent policies.
While the precious metal slipped below $1,800 an ounce 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.
Strong jobs data and wage pressures "helped knock gold lower," but the metal "moved higher almost immediately and has a 'buy the dips' feel at the moment," said Nicholas Frappell, global head of institutional markets at ABC Refinery in Sydney.
Spot gold was little changed at $1,798.29 an ounce as of 8:32 a.m. in London, after trading at its highest level since July 5. The Bloomberg Dollar Spot Index was steady after earlier falling to its lowest level since June. Silver declined, while palladium and platinum climbed.
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