Gold closed Thursday’s session with a loss, falling to its lowest level since mid-October, as the precious metal failed to find support from the uncertainty caused in the markets by the developments with the new Omicron mutation.
Most traders and investors believe that the new mutated coronavirus strain “will not cause catastrophic damage to the global economy,” Chintan Karnani, director of research at Insignia Consultants, told MarketWatch.
“They prefer stocks to safe havens like gold,” he said. “Technical traders are also not buying, as short-term technical data is declining.”
At the moment, “traders are just in the dark” until there is “clarity” about Omicron from the World Health Organization, Karnani said.
“Fears about the new mutation have eased somewhat over the weekend and this restores some risk aversion in the market. The fall in the crude oil market this week also has a negative effect on the metal markets,” Jim Wyckoff said in a note. , an analyst at Kitco.com.
“With markets looking for direction and investor behavior extremely volatile, gold prices may move higher if the Omicron mutation cases increase,” said Naeem Aslam, an AvaTrade analyst.
Meanwhile, the US dollar added less than 0.1% according to the ICE US Dollar index, while the yield on the 10-year US government bond strengthened to 1.445%, from 1.433% on Wednesday.
In this climate, the gold delivery in February It fell $ 21.60, or 1.2%, to $ 1,762.70 an ounce on Thursday, its lowest level since Oct. 12, according to FactSet.
As for the other metals, the March delivery silver fell 2 cents or 0.1% to $ 22,316 an ounce, widening yesterday’s losses (-2.1%).
On the contrary, o March delivery copper rose 1.2% to $ 4,299 a pound.
The January delivery contract for platinum slipped 0.2% to $ 933.10 an ounce, while palladium delivery in March added 1% to $ 1,771.40 per ounce.
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