Gold was stable as investors weighed the outlook for monetary policy against the risks posed by variants of the Omicron virus to the recovery of the global economy.
The Federal Reserve is likely to raise interest rates in March, and authorities say they may need to raise interest rates sooner than expected to curb the hottest inflation since the 1980s. Meanwhile, traders are reconsidering the kick-off of the European Central Bank’s rate hike for the first time in more than a decade.
Haruhiko Kuroda appears to be sticking to policy on Tuesday, adjusting his view of inflation risk, but Haruhiko Kuroda emphasized his commitment to continue easing to pursue banks’ distant price targets. Expected to do.
On the viral side, President Joe Biden’s chief medical adviser on the pandemic Anthony Fauci said it was too early to know if the rapid spread of new variants would accelerate the end of the health crisis.
Gold has risen above $ 1,800 per ounce after falling for the first time in three years in 2021 as monetary tightening and the introduction of vaccines are expected. Nevertheless, the traditional role of bullion as an inflation hedge and the uncertainty about the impact of Omicron support the demand for shelter assets.
Spot gold rose 0.1% on Monday and remained almost unchanged at $ 1,819.08 an ounce by 8:03 am in Singapore. The Bloomberg Dollar Spot Index has been stable after rising 0.1% in the previous session.
Silver and palladium were flat, but platinum was ahead.
https://gulfbusiness.com/gold-steady-as-investors-weigh-policy-outlook-omicron-risks/ Gold is stable, Omicron’s risk as investors are considering policy outlook