Gold Steady Ahead of US Data as Traders Eye China Reopening




  • In Business
  • 2022-12-05 09:00:37Z
  • By Bloomberg

(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.

Most Read from Bloomberg

  • China's Covid Pivot Accelerates as Cities Ease Testing Rules

  • OPEC+ Pauses as Russia Sanctions and China Covid Rules Roil Crude Markets

  • OPEC+ Latest: Group Agrees to Keep Oil Production Unchanged

  • Elon Musk Says Apple Is 'Fully' Advertising on Twitter Again

  • This Stock Strategist Says We'll See 5% Inflation for the Next Decade

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.

Most Read from Bloomberg Businessweek

  • 11 Hours With Sam Bankman-Fried: Inside the Bahamian Penthouse After FTX's Fall

  • TikTok's Viral Challenges Keep Luring Young Kids to Their Deaths

  • Can Duolingo Actually Teach You Spanish?

  • Ryanair, EasyJet Scale Back in Germany Over Airport Fees

  • Forget Zoom Calls, Remote Work Startups Want to Build a Virtual Office

©2022 Bloomberg L.P.

COMMENTS

More Related News

Shoot it? Snare it? Let it go back to China? US officials wring hands over options for spy balloon
Shoot it? Snare it? Let it go back to China? US officials wring hands over options for spy balloon

Among the many lingering questions about a Chinese spy balloon is why it's in U.S. airspace and why now.

The Fed Is All That Matters to Stock Analysts Ignoring Earnings
The Fed Is All That Matters to Stock Analysts Ignoring Earnings

(Bloomberg) -- The profit outlook for companies in the S&P 500 Index is rapidly deteriorating - yet analysts can't raise their stock-price targets fast...

Bitcoin Resurgence Brings Back Old Phenomenon of Wild Weekends
Bitcoin Resurgence Brings Back Old Phenomenon of Wild Weekends

(Bloomberg) -- Amid this year's rally, Bitcoin has resumed one of its old habits: it's back to posting big moves on weekends, a phenomenon that's become an...

Record-Breaking Cold Freezes New York City and New England
Record-Breaking Cold Freezes New York City and New England

(Bloomberg) -- Glacial air will linger across New York and New England Saturday after record-breaking cold and wind froze the region overnight.Most Read from...

China records 3,278 COVID-related deaths between Jan 27 and Feb 2
China records 3,278 COVID-related deaths between Jan 27 and Feb 2
  • US
  • 2023-02-04 10:56:06Z

SHANGHAI (Reuters) -China's COVID-related deaths between Jan. 27 and Feb. 2 this year in hospitals totaled 3,278, the country's Center for Disease Control...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business