Gold climbed above $1,850 an ounce on Monday to its highest in more than a week, lifted by a weaker dollar, with fears that aggressive Federal Reserve rate hikes would tilt the US economy into recession also spurring haven demand for the metal. The dollar extended its decline as investors scaled back bets that rising US interest rates would drive further dollar gains, while turning hopeful that loosening lockdowns in China can boost global growth and commodity currencies. The Fed has raised its benchmark policy rate by an aggregate of 75 basis points this year, and is on track to increase it again in 50-basis point increments at each of the next two meetings in June and July. St. Louis Fed President James Bullard reiterated his view last week that the US central bank ought to raise interest rates to 3.5% this year to get high inflation more quickly under control.
