The price of gold rose above $1810 per ounce on Tuesday morning, thereby contributing to an increase of over 8% this fiscal quarter. According to U.S. economic data, this rise is largely driven by the weakening of the U.S. dollar as well as the recent inflation cooldown and slower consumer spending.
While spot gold gained 0.6% and sat at $1808.48 per ounce on Tuesday morning, the Bloomberg Dollar Index dropped 0.3% to its lowest level since June. Silver and palladium also gained, while copper rallied by 3.3%.
Following the release of U.S. data on Friday that indicated an inflation cooldown, investors are hopeful that the Federal Reserve will decide to ease its fiscal policy, thereby curbing its recent interest rate hikes.
Elsewhere, China is showing signs of further reopening its economy following the government’s decision to roll back an array of its stricter COVID-related health regulations. Among the pandemic rules that will be scrapped is the requirement for all inbound travelers to quarantine upon arrival in China. This regulation is expected to be phased out in January.
