Dollar weakness strengthens gold quotes

Gold prices are gaining more than 1.2% today and breaking above the $1,800 barrier on the back of another lifting of Covid restrictions in China. The decision of the Chinese authorities, although debatable on the one hand in the face of rumors of a huge surge in disease in the country put pressure on the US dollar, which is losing dynamically. All this is combined with growing expectations for a dovish turn in FOMC policy. 

CFTC data show increasing long exposure to gold contracts. Source: Bloomberg

Gold quotes and the U.S. dollar index have been inversely correlated in recent months. Source: xStation 5