Gold prices rebounded after three weeks low as traders weighed the comments of Jerome Powell’s remarks on curbing inflation against the spread of the omicron variant.
Researchers are racing to understand the impact of virus strain, which was supposed to have originated in South Africa and spread to countries like Brazil and the U.K. The developments have led to a series of travel restrictions to curb its spread. New concerns have been sparked whether the restrictions in a new coronavirus variant could evade the vaccine’s protection and cause a fresh surge in infections.
As per Bloomberg news, the price of gold fell Tuesday after Federal Reserve chair Powell said that officials should consider removing pandemic support in a faster manner to curb high inflations. Powell said that purchases of bonds could be completed a few months earlier and retired the “transitory” word to describe the inflation prices.
Tom Price, an analyst with Liberum Capital Ltd, said that whatever is the position of Powell it is not enough to cripple the price of gold. “It is a nicely balanced market between people who are worried about tapering and those who are worried about inflation,” he said.
Bullions has posted a marginal loss in November while investors weighed the impact of the omicron variant on global economic recovery and the prospects of Fed reserve bringing the pre-pandemic stimulus despite elevated consumer prices.
The U.S central bank had announced at the beginning of November to slow buy back the bonds at $15 billion per month and complete the asset purchase by time-bound schedule in Mid-2022.
The spot price of gold advanced to $ 1785.39, up by 0.6% in London at 12.04 pm Wednesday after falling 0.6% on Tuesday. The Dollar Spot index of Bloomberg was weaker by 0.1 %, extending Tuesday’s decline. There was little change in Silver while Platinum and Palladium gained.
