Gold steady as traders assess Omicron, rate hike impact
Gold prices held steady on Tuesday, as traders assessed the impact of surging Omicron coronavirus cases and interest rate hikes aimed at taming high inflation.
Spot gold was up 0.1% at $1,790.57 per ounce by 0142 GMT. U.S. gold futures were down 0.2% at $1,790.60.
British Prime Minister Boris Johnson said on Monday he would tighten coronavirus curbs to slow the spread of the Omicron variant if needed, after the Netherlands began a fourth lockdown and as other European nations consider Christmas restrictions.
The dollar hovered below recent highs, having lost ground overnight after a blow to Democratic spending plans in Washington.
U.S. stocks closed more than 1% lower overnight, pressured by surging Omicron coronavirus cases and a possible fatal blow to a $1.75 trillion domestic spending bill, with oil prices plunging.
The Federal Reserve's more hawkish turn this week came amid heightened worries about economic recovery and inflation, but it has barely changed the bond market's view that short-term interest rates could top out below the U.S. central bank's estimated peak.
Commodities outperformed other assets this year as a recovery from the pandemic boosted demand though gold's poor showing dented investor appetite.
Spot silver was down 0.1% at $22.20 an ounce, platinum shed 0.2% to $930.72 and palladium fell 0.1% to $1,747.46.
· Omicron's global spread prompts renewed lockdowns, delayed reopenings
· New Zealand delays border re-opening plans over omicron concerns
· Australia’s central bank is optimistic the omicron variant will not derail ongoing economic recovery
· WHO sounds warning over fast-spreading Omicron
The Omicron variant of the coronavirus is spreading faster than the Delta variant and is causing infections in people already vaccinated or who have recovered from the COVID-19 disease, the head of the World Health Organization (WHO) said on Monday.
· Businesses fret as South Korea reimposes COVID-19 curfews
As clocks struck 9 p.m. this week, customers packed up and left restaurants and other eateries across South Korea as a reimposed curfew designed to help stem a surge in coronavirus infections sparks fears of economic disaster for some businesses.
Last week authorities announced a series of social distancing measures lasting until at least Jan. 2. They include limiting gatherings to no more than four people and forcing restaurants, cafes and bars to close by 9 p.m. (1200 GMT).
· Oil prices climb but worries over Omicron linger
Oil prices rose on Tuesday, though investors remained worried about the rapid spread of the Omicron coronavirus variant globally, prompting countries to consider more restrictions potentially denting fuel demand.
Brent crude futures increased by 59 cents, or 0.8%, to $72.11 a barrel by 0418 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose by 73 cents, or 1.1%, to $69.34 a barrel.
· Asian stocks firm after Wall Street rout, but Omicron risks loom
Asian shares advanced on Tuesday, shrugging off a bruising Wall Street session, as Chinese markets cheered Beijing's move to help troubled property firms, although surging cases of the Omicron coronavirus variant remain a worry for investors.
U.S. stock indexes retreated more than 1% as positive COVID-19 case counts rose and President Joe Biden's social spending and climate bill hit a significant setback.
· European markets look for rebound as investors assess omicron risk; Stoxx 600 up 1%
European markets climbed on Tuesday after the previous session’s sell-off, with concerns over the omicron Covid-19 variant still hanging over global stocks.
The pan-European Stoxx 600 added 1% in early trade, retracing most of Monday’s losses. Basic resources jumped 2.3% to lead gains as all sectors and major bourses traded in positive territory.
Reference: CNBC,Reuters
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