Gold slips into tight range as dollar steadies, Omicron fears ebb
Gold prices eased into a tight range on Tuesday as the dollar clawed back some of its losses while appetite for riskier assets made a comeback as investors looked past the economic risks posed by the Omicron coronavirus variant.
Spot gold was down 0.2% at $1,786.04 per ounce, as of 1558 GMT, and U.S. gold futures slid 0.5% to $1,786.10.
Spot silver rose 0.8% to $22.42 per ounce, palladium jumped 3.4% to $1,808.19 while platinum was down 0.2% at $930.37.
· Dollar firm as risk-sensitive currencies advance
The U.S. dollar steadied on Tuesday, recovering after a bout of profit-taking in the previous session, but its gains were held in check as improving risk sentiment boosted riskier currencies such as the Australian dollar and the British pound.
The U.S. Dollar Currency Index was near flat on the day at 96.53 after slipping as low as 96.336 earlier in the session. The index, which is up about 7% for the year, fell 0.1% on Monday as traders sold the greenback to book profits in the final days of the year.
· U.S. Treasury yields rise amid worsening omicron news
U.S. Treasury yields rose on Tuesday amid deepening concern around omicron lockdowns and a blow to President Joe Biden administration’s spending bill that dented some U.S. economic growth forecasts.
The yield on the benchmark 10-year Treasury note rose 6.5 basis points to 1.484% at around 3:00 p.m. ET. The yield on the 30-year Treasury bond moved 4.6 basis points higher to 1.894%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
· Oil prices rise but Omicron worries linger
Oil prices rebounded on Tuesday after a sharp fall in the previous session as investors’ appetite for risk improved, although they remained cautious amid the rapid spread of the Omicron coronavirus variant across the globe.
Brent crude settled $2.46, or 3.4%, higher at $73.98 per barrel, and U.S. West Texas Intermediate (WTI) crude rose $2.51, or 3.66%, to settle at $71.12 per barrel.
· Dow jumps 560 points as market rebounds from omicron-triggered 3-day slide
The major averages rebounded sharply on Tuesday following three days of losses amid fears about the fast-spreading Covid omicron variant.
The Dow Jones Industrial Average gained 560.54 points, or 1.6%, to 35,492.70, helped by gains in Nike and Boeing. The S&P 500 jumped nearly 1.8% to 4,649.23 as nine of the 11 sectors registered gains. The technology-focused Nasdaq Composite added 2.4% to 15,341.09. The small-cap benchmark Russell 2000 climbed 2.9% for its best day since July 20.
· European markets close higher as investors assess omicron risk; Stoxx 600 up 1.4%
Reference: CNBC, Reuters
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