Gold Maintains $1,800, While COVID Reopening Boosts Copper

Gold prices held stable on Monday despite stronger-than-expected U.S. employment data predicting future interest rate hikes. Copper prices rose as more Chinese regions relaxed COVID-19 restrictions, boosting expectations for a full reopening.

Despite November nonfarm payrolls growing faster than expected, markets appeared to be adhering to the Fed's message that interest rates will rise more slowly in the coming months.

The dollar was trading at a five-month low, while U.S. Treasury yields remained over two-month lows.

As the Fed stops rate rises, gold's price is expected to rise Inflation and the Fed's policy rate will likely drive market volatility.

Spot gold rose 0.1% to $1,800.10 per ounce, and gold futures rose 0.2% to $1,813.40 per ounce, nearing four-month highs.

Bets on a less aggressive Fed boosted other precious metals. Silver futures rose 0.9% and platinum 0.6%. Rising U.S. interest rates increased the cost of holding non-yielding assets, which hurt precious metals this year.

This caused gold to lose its safe-haven status, and it has traded more like risky assets this year.

More Chinese localities softened anti-COVID policies over the weekend, boosting sentiment. Beijing and Shanghai eased travel and testing restrictions to pacify anti-zero-COVID demonstrators.

Reuters reports that the administration will ease nationwide restrictions in the coming weeks.

As one of the world's largest commodity importers, China's expanded openness increased the price of industrial metals.

Copper futures rose 0.4% to $3.8718 per pound after gaining 6% last week. The red metal hit a three-week high.

China's reopening is expected to boost copper demand, while supply has tightened due to decreasing output from Chile and Peru.