Zero Covid pressure underneath

Gold fell as the dollar, which has strengthened amid turmoil in China due to zero Covid measures, put downward pressure on the precious metal. Gold fell as turmoil in China due to zero Covid measures strengthened the dollar, putting downward pressure on the precious metal. Gold prices have had a volatile year, peaking in March after Russia invaded Ukraine. The precious metal has fallen about 15% since then as the Fed aggressively tightened monetary policy to rein in inflation. The dollar rose on Monday on demand for safe havens following protests against Covid restrictions in the world’s second-largest economy. “Gold prices are now consolidating after a sharp rise in recent times. While the strengthening dollar will weigh on gold prices in the short term, inflation concerns could provide support to the precious metal in the long term,” said Harish Gallipelli, Director, Ila Commodities India.