Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Gold sticks to $1,800, copper boosted by China COVID reopening

Published Dec 04, 2022 07:38PM ET Updated Dec 04, 2022 07:43PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
XAU/USD
+0.55%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
+0.74%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
-0.72%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick 

Investing.com-- Gold prices were steady on Monday despite stronger-than-expected U.S. jobs data indicating more potential interest rate hikes, while copper prices rose as more Chinese cities relaxed COVID-19 restrictions, raising hopes for a full reopening.

While U.S. nonfarm payrolls grew more than expected in November, markets appeared to be sticking to the Federal Reserve’s message that interest rates will rise at a slower pace in the coming months. 

The dollar also appeared to have taken little support from the jobs reading, and was trading at a five-month low, while U.S. Treasury yields hovered at over two-month lows. 

Bullion prices are expected to recover further in the coming months as the Fed’s interest rate hikes slow. But uncertainty over the path of U.S. inflation, as well as the Fed’s terminal rate, is still expected to spur volatility in the market. 

Spot gold rose 0.1% to $1,800.10 an ounce, while gold futures rose 0.2% to $1,813.40 an ounce, with both instruments trading at a near four-month high. 

Other precious metals were buoyed by bets on a less hawkish Fed. Platinum futures rose 0.6%, while silver futures added 0.9%. Precious metal markets logged deep losses this year as rising U.S. interest rates pushed up the opportunity cost of holding non-yielding assets. 

This cost gold its safe haven status, and has seen the yellow metal trade more in line with traditional risk-driven assets this year. 

Sentiment in recent sessions was also supported by more Chinese cities relaxing anti-COVID measures over the weekend. Economic hubs including Beijing and Shanghai both relaxed some movement and testing measures, as the government sought to placate a wave of unprecedented protests against its strict zero-COVID policy.

Reuters also reported that the government is gearing up to announce a nationwide easing of restrictions in the coming weeks. 

Industrial metals rose sharply on the prospect of a broader Chinese reopening, given that the country is one of the biggest commodity importers in the world.

Copper futures rose 0.4% to $3.8718 a pound after rallying more than 6% last week. Prices of the red metal were also trading at a three-week high.

Copper demand is forecast to skyrocket on a Chinese reopening, while supply tightened in recent months on lower production from major miners in Chile and Peru.

Gold sticks to $1,800, copper boosted by China COVID reopening
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email