Gold Down but Up from Three-Week Low, Omicron Concerns Grow By

© Reuters.

By Gina Lee – Gold was down on Thursday morning in Asia, but was climbed up from a three-week low. Investors are mulling how central banks are likely to respond to surging inflation, while concerns are also growing about the risk posed by the newly discovered omicron variant of COVID-19 to the global economic recovery.

edged down 0.18% to $1,781.15 by 10:34 PM ET (3:34 AM GMT). The , which normally moves inversely to gold, inched down on Thursday.

The U.S. Federal Reserve must prepare for the possibility that inflation may not recede in the second half of 2022 as most forecasters currently expect, Chairman said on Wednesday. He testified before the House Financial Services Committee on Wednesday alongside U.S. Treasury Secretary Janet Yellen, after the duo testified before a Senate Banking Committee hearing the day before.

Omicron could extend some of the supply-chain challenges and shortages that have led to higher inflation, and officials will need to factor that in as they decide how to withdraw their monetary policy support, said New York Fed President John Williams.

Although the Fed has adopted a more hawkish tone to inflation, the Bank of England and European Central Bank are sticking to their dovish tones.

On the data front, the was a higher-than-expected 61.1 in November.

In Asia Pacific, South Korea’s grew a higher-than-expected 3.7% year-on-year in November.

SPDR Gold Trust (P:) said its holdings fell 0.2% to 990.82 tons on Wednesday from Tuesday.

In other precious metals, silver was up 0.3%, platinum edged up 0.2% and palladium gained 0.4%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button