Year-end optimism pushed U.S. stocks to a record high and kept gold steady as traders’ betted on global economic recovery amidst the Omicron variant and tightening monetary policy.
Led by the technology and energy sector, the S&P 400 index registered a record 69-year end close though volumes were lower than the average. The omicron is a highly transmissible virus and spreads rapidly though they are less deadly, especially for people who have received their vaccinations and booster doses.
As banks revert to their pre-pandemic stimulus to contain inflation, Bullion is heading for its first-year loss in three years. Investors are monitoring the threat landscape of the Omicron variant even as the U.S. has cut down the isolation time from ten days to five days. The U.K. is not enforcing stricter restrictions in England despite the surge in the COVID cases.
As per Bloomberg News, the lack of fresh triggers has turned the gold prices range-bound near $1810 an ounce, reflecting its stability in bond yields and the U.S. dollar index, according to Madhavi Mehta, senior analyst with the Indian based Kotak Securities. She said that though the virus has subsided, the rising variant and restrictions to prevent its spread are concerns.
After rising 0.1% Monday, Spot gold declined today 0.1% at 12.36 p.m. in Singapore. It is down by almost 5% in 2021—the Platinum. Silver and palladium fell while the Bloomberg index for spot dollar changed a little. The march futures for copper dropped by 0.5% on the Comex after two-month high closing Monday.
The Singapore Precious Metals Exchange CEO Victor Foo said that the sideways trend would continue from $1750 to $1820. Gold is expected to face resistance above $1815 and struggle to move up unless the dollar trades lower.
