Gold steady as investors weigh policy outlook, Omicron risks
Now Reading
Gold steady as investors weigh policy outlook, Omicron risks

Gold steady as investors weigh policy outlook, Omicron risks

Gold is holding above $1,800 an ounce after dropping for the first time in three years in 2021

Gold was steady as investors weighed the outlook for monetary policy against the risks posed by the omicron virus variant to the global economic recovery.

The Federal Reserve is likely to raise interest rates in March, with officials saying they may need to implement hikes faster than expected to curb the hottest inflation since the 1980s. Meanwhile, traders are reconsidering an earlier kickoff for the first European Central Bank rate increase in more than a decade.

While the Bank of Japan is seen sitting tight on policy while adjusting its view of inflation risks on Tuesday, Governor Haruhiko Kuroda is expected to emphasise his commitment to continued easing in pursuit of the bank’s distant price target.

On the virus front, President Joe Biden’s chief medical adviser on the pandemic Anthony Fauci said it’s too soon to know whether the rapid spread of the new variant will hasten the end of the health crisis.

Gold is holding above $1,800 an ounce after dropping for the first time in three years in 2021 amid the prospects of monetary policy tightening and the deployment of vaccines. Still, bullion’s traditional role as an inflation hedge and the uncertainty over omicron’s impact is supporting demand for the haven asset.

Spot gold was little changed at $1,819.08 an ounce by 8.03am in Singapore, after rising 0.1 per cent on Monday. The Bloomberg Dollar Spot Index was steady after adding 0.1 per cent in the previous session.

Silver and palladium were flat, while platinum advanced.

You might also like

© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top