Gold dips on greenback bounce; Omicron fears cap losses

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  • Palladium hits greater than one-month excessive
  • Gold faces resistance simply above $1,815 -analyst

Dec 27 (Reuters) – Gold costs slipped in skinny commerce on Monday because the U.S. greenback rebounded, although bullion was nonetheless hovering near a one-week excessive as considerations over the Omicron coronavirus variant elevated safe-haven demand.

Spot gold was down 0.2% at $1,804.49 an oz. by 1326 GMT however remained above the $1,800 reached final week. U.S. gold futures slipped 0.3% to $1,806.50.

“Whereas there’s a firmer U.S. greenback, there is not quite a lot of motion in gold in the present day,” mentioned Quantitative Commodity Analysis analyst Peter Fertig, including that one of many primary causes for the dearth of liquidity is closed markets over Christmas.

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Barely greater yields enhance the chance value for holding gold, which is weighing a little bit on gold costs, Fertig added.

World equities steadied and oil costs eased on considerations that the Omicron variant may sluggish the economic system within the new 12 months. GLOB/MKTS

“Gold faces resistance simply above $1,815 … it is going to proceed to wrestle to carry on to positive aspects at these ranges except the U.S. greenback strikes sharply decrease this week,” mentioned Jeffrey Halley, a senior market analyst at OANDA.

The greenback index (.DXY) rose from its weakest stage in practically every week, making greenback-priced gold much less enticing for holders of non-U.S. currencies.

Though quiet general this week, “the low liquidity makes headline sensitivity extra pronounced, as the skinny markets are more likely to make for extra jittery value motion if one thing have been to occur”, mentioned DailyFX forex strategist Ilya Spivak.

Silver retreated by 1.3% to $22.65 an oz. whereas platinum dropped 2.1% to $953.94.

Palladium eased by 0.4% to $1,941.40 an oz. after touching its highest since Nov. 23 at $1,962.50.

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Reporting by Bharat Govind Gautam and Seher Dareen in Bengaluru
Extra reporting by Kavya Guduru
Modifying by David Goodman

Our Requirements: The Thomson Reuters Trust Principles.

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