The shock decision by OPEC+ is "really driving that inflation hedge trade for gold," analyst says.

The Chinese state planner has issued several warnings against hoarding and speculation in recent weeks.

Metal price was also impacted by the rise in oil prices and fears about inflation and higher interest rates in the US.

The new reduction is significant for a market where — despite the recent price fluctuations — supply was looking tight for the latter part of the year.

Tin may not stay off the radar for too long.

Spot gold was up 0.8% at $1,980.46 per ounce by 3:25 p.m. EDT, near a one-week high.

Mining companies have to run just to stand still, but expansion capex in the global mining sector as a percentage of profits has halved in a decade.

The LME plans to work with China's Qianhai Mercantile Exchange (QME) to launch trading in lower nickel grades.