Gold becomes expensive amid the China COVID shift and the decrease in US inflation

Gold becomes expensive, and now its price reaches $1800 per ounce. Silver, platinum, and palladium also rose in price. Such a situation has developed due to removal of anti-COVID restrictions in China. The pressure on the dollar increases as the price of volatile assets grows. 

Since the beginning of January, China will no longer place travelers in quarantine. This accelerated the rapid abandonment of the zero-COVID policy and improved the international position of Asia's largest economy.

This quarter, the gold price increased by more than 8%. Such growth happened because of a decreased dollar price and hopes that the Fed will slow down the fast tightening of monetary policy. 

Markets also adapt to the Friday data from the US. It indicates a reduction of inflation and consumer expenditures, and it may weaken the Fed’s striving to increase the rates.