Limited rise under

Gold is on the rise with the expectation that China will reopen after virus restrictions and that the Fed may slow down the rate hike cycle.

Gold is up moderately this morning as dollar and US bond yields drop.

Gold bullion, which fell for 7 consecutive months with the Fed’s aggressive cash tightening policy, has rallied by 15 percent since November.

Speaking on Monday, 2 Fed officials said the Central Bank could raise interest rates above 5 percent and keep it above that level for a while. Whether the inflation will continue to moderate in the US data to be announced in the markets this week will be watched closely. Inflation fell sharply in December due to declining power costs in the Euro Zone.

The ounce price of spot gold, which increased by 0.3 percent yesterday, traded at $1,873.18 with a limited increase this morning. The Bloomberg Dollar Spot index is flat today after falling 0.6 percent yesterday, while platinum and palladium are on the rise.