Gold rises steadily amid falling dollar, optimism in China and dovish Fed sentiment

Gold starts the week with a strong rise against the backdrop of a declining US dollar. Renewed optimism in China and dovish expectations from the Fed offset high US Treasury yields.

The number of US nonfarm payrolls grew more than expected in November. Markets are sticking to the Fed's message that interest rates will rise at a slower pace.

As the Fed's interest rates slow down, precious metals prices will recover. However, uncertainty about the dynamics of inflation in the US and the Fed's interest rate cap may stimulate market volatility.

Sentiment in recent sessions was supported by more Chinese cities relaxing anti-COVID measures over the weekend. According to Reuters, the government is preparing to announce an easing of restrictions in the coming weeks.

The attention is now focused on the US ISM Services PMI and preliminary data on consumer sentiment. These statements are due to be published this week.