Gold Hits More Than A Month’s High As Dollar Weakens
Gold hits one-month high amid weakness in dollar
Gold prices climbed on Tuesday on a weakening US dollar and concerns over the spread of the Omicron coronavirus pandemic, pushing bullion’s year-end rally to a more than a month high.
Spot gold rose 0.3 per cent to $1,815.39 an ounce by 1010 GMT, hitting a high of $1,816 since November 22, while US gold futures rose 0.4% to $1,816.60.
“While there are concerns about the Omicron variant, investment demand is quite flat. So it is a year-end bullish momentum as there is still some risk-on sentiment,” said Jigar Trivedi, commodity analyst at the Mumbai-based broker. Anand Rathi Share
“In the absence of any major economic data, gold may not move much higher and it will remain in this range,” Trivedi said, adding that the positive sentiment on gold at the moment is a result of a weak dollar.
The US dollar slipped and was near the low end of its recent trading range against a basket of peers, supporting gold’s appeal to holders of non-US currencies.
Limited gains in safe-haven bullion, shares in Europe and Asia rose on Tuesday, helped by another record-setting day on Wall Street.
Harshal Barot, Senior Research Consultant, South Asia at Metals Focus, said: “Given the rise of Omicron, there will be a rethink on Fed’s hawkish action expectations in 2022 and if that happens, gold could start moving out of its range.” “
Among other metals, silver rose 0.2 percent to $23.08 an ounce while platinum rose 0.3 percent to $973.
