Profits for gold despite market uncertainty

Gold futures traded higher on Wednesday as several investors turned to the precious metal as a support against the overall volatility of the market amid prolonged concerns about the impact of the Omicron variant of the coronavirus.

Gold futures were up 0.4% at $ 1,784.30 an ounce.

The gold recovery came amid a sharp recovery in the stock market, as investors used falling prices to bet that the latest version of COVID-19 would not derail the economic recovery, suggesting that inflows into a safe haven may are as strong as expected.

While gold could benefit as questions remain about the new variant, the key question as to what the Fed will do remains and gold may face pressure if US employment data on Friday confirms a stronger market. said Ricardo Evangelista, senior analyst at ActivTrades.

Reduced incentives and interest rate hikes are pushing up government bond yields, raising the opportunity cost of gold.

The United States imposed stricter anti-COVID-19 test rules on travelers, and many countries closed their borders amid uncertainty over Omicron.

Gold remains trapped in the $ 1,770-1,825 range, said StoneX analyst Rhona O’Connell.

Elsewhere, silver rose 0.4 percent to $ 22.715 an ounce. Platinum gained 1.6% to $ 941.70 and palladium gained 1.7% to $ 1,734. Copper added 0.7% to $ 4,309 a pound.