Gold plunges on dollar rebound; Omicron fears heading losses

  • Palladium hits its highest level in over a month
  • Gold faces resistance just above $ 1,815 – analyst

December 27 (Reuters) – Gold prices fell on Monday as the US dollar rebounded, although bullion still hovered near a one-week high as concerns over the Omicron coronavirus variant increased demand for safe investment.

Spot gold was down 0.2% to $ 1,804.49 an ounce as of 13:26 GMT, but remained above the $ 1,800 reached last week. US gold futures slipped 0.3% to $ 1,806.50.

“Although there is a firmer US dollar, there is not much movement in gold today,” said Peter Fertig, analyst at Quantitative Commodity Research, adding that one of the main reasons from the lack of liquidity is the closing of the markets at Christmas.

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Slightly higher yields increase the opportunity cost of holding gold, which weighs a bit on gold prices, Fertig added.

Global stocks have stabilized and oil prices have calmed down amid fears that the Omicron variant will slow the economy in the new year. GLOB / MKTS

“Gold is facing resistance just above $ 1,815 … it will continue to struggle to hold gains at these levels unless the US dollar drops sharply this week,” said Jeffrey Halley, analyst. senior market at OANDA.

The dollar index (.DXY) fell from its lowest level in almost a week, making gold at the greenback price less attractive to holders of currencies other than the United States.

While generally calm this week, “low liquidity makes headline sensitivity more pronounced as weak markets are likely to make price action more choppy if something were to happen,” the strategist said. in DailyFX currency, Ilya Spivak.

Silver fell 1.3% to $ 22.65 an ounce while platinum fell 2.1% to $ 953.94.

Palladium fell 0.4% to $ 1,941.40 an ounce after hitting its highest level since November 23 at $ 1,962.50.

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Reporting by Bharat Govind Gautam and Seher Dareen in Bengaluru Additional reporting by Kavya Guduru Editing by David Goodman

Our Standards: Thomson Reuters Trust Principles.

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