Gold Price News: Gold Boosted by Haven Demand From Chinese Protests

Gold has been lifted by market jitters as a result of the protests in China about continuing lockdown restrictions. With equities down, gold has climbed back to around $1,760 an ounce as investors seek out the precious metal as a haven. 

Today’s boost underlines the support that remains for gold that has enabled it to sustain most of the gains made earlier in the month on the prospect of a pivot by the Federal Reserve. Later this week, we will get a test of the strength of that support when Fed Chair Jerome Powell speaks with gold investors hoping for a dovish tone to his comments after his fellow Fed officials have struck a more hawkish tone with talk of the need for interest rates needing to reach 5%. 

Gold has found itself driven predominantly by the words and actions of the US central bank and the concern will be that this month’s largely sentiment-driven gains will face a swift turnaround if the Fed doesn’t prove as near to slowing down its aggressive rate hikes as initially expected.

So for now, gold is enjoying its buoyancy above $1,750 and is likely to continue to do so until the Fed’s December interest rate announcement. But for how long gold’s buoyancy will last, remains to be seen.

Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. 

As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.