Gold is trading near week-long highs

The gold prices They reversed course on Monday to get closer to a one-week high, as new risks to global economic expansion from rising cases of the Omicron variant of the coronavirus offset the pressure of a dollar on the rise.

Spot gold was up 0.3% at $ 1,812.81 an ounce, remaining above the key $ 1,800 level reached last week. US gold futures were up 0.1% at $ 1,812.80 an ounce.

The outlook for gold is optimistic in the first quarter of 2022, and the main driver is inflation, which maintains a floor for prices, “said Jim Wyckoff, senior analyst at Kitco Metals.

Non-interest-bearing bullion is often considered a hedge against higher inflation. However, the metal is considered a safe haven asset against currency movements. The dollar index rose from a nearly a week low, making gold – which is traded in the greenback – less attractive to holders of other currencies.

“Although there is a firmer dollar, there is not much movement in gold today,” said Peter Fertig of Quantitative Commodity Research, adding that one of the main reasons for the lack of liquidity is the closing of markets over Christmas. A slight rise in yields increases the opportunity cost of holding gold, which is weighing on prices a bit, he added.

In other precious metals, silver was up 0.6% to $ 23.07 an ounce; platinum fell 1% to $ 965.13; and palladium climbed 2.5% to $ 1,997.77, hitting its highest level since November 22.

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