The highly unusual protests taking place across China could soon pay off, with rumblings that Beijing is considering replacing its zero-Covid policy with a softer touch.
In scenes reminiscent of the 1989 Tiananmen Square rallies, tens of thousands of Chinese citizens have taken to the streets in recent weeks to protest against the strict zero-Covid policy which has resulted in almost three years of lockdowns.
A fire in a high-rise building believed to be in lockdown, which resulted in the deaths of 10 people, triggered the civil unrest last week. While Beijing denies Covid restrictions were to blame, the outpouring of discontent appears to have resulted in a slightly different approach. Yesterday (Wednesday) several regions within Shanghai and Guangzhou, which had been in lockdown due to an increase in infections, were suddenly released from isolation measures.
While the government says that this is due to rising vaccinations and a ‘weakening’ of the disease, observers suggest it could also be due to the unusual level of discontent that has made headlines across the world.
Whatever its root, this news could propel gold to additional gains as the reopening of the Chinese economy could create additional demand for the yellow metal. Don’t delay. Capitalise on this development. Add gold to your portfolio now.