Gold prices fell today, Wednesday, after they started their trading on a rise amid limited trading, with investors heading to take profits.
The volatility of the yellow metal’s trading came in conjunction with the decline in the US Treasury bond yields, but prices are still stagnant above the key level of $1800 an ounce.
Gold prices rose at the end of trading yesterday, Tuesday, after a volatile session, to record the third rise in the last 4 consecutive sessions, with fluctuations in the performance of the US dollar.
Gold Prices Today
The price of gold futures contracts for February delivery decreased by 0.44%, to reach the level of $1802.50 an ounce.
The spot price for the yellow metal also decreased by 0.18%, recording $1802.99 an ounce.
At the same time, the price of silver futures contracts – for March delivery – increased by 0.1%, to record $23.15 an ounce.
While the spot platinum price declined by 0.25%, recording $976.38 an ounce, while the spot palladium price rose by 0.07%, to record $194.58 an ounce.
Gold Market Situation
“Gold’s attempts to make a meaningful recovery remain unconvincing, with traders cutting long positions at the first sign of problems during the day,” said chief analyst at Oanda, Jeffrey Haley.
He added, “Since the US dollar looks more likely to fall due to the pressure of the Omicron pivot at the moment, it is likely that gold will rise during this week, but I still doubt that it can sustain these gains.”
Bullion priced in dollars tends to be sensitive to movements in a safe haven currency, as a weaker dollar makes gold more attractive to overseas buyers, and vice versa.
The benchmark 10-year US Treasury yields fell, reducing the opportunity cost of holding interest-free gold.
Asian stocks also fell, after a mixed trading session on Wall Street, as investors in the region laid out their portfolios for the new year, and continued to face rising global numbers of Omicron virus cases.
“A lot of economists are lowering their US growth forecasts, and arguably, we can get a lower end of the year than a lot of people expected, and that supports gold,” said Stephen Innes, managing partner at SBI Asset Management.
Analysts said gold trading is likely to remain weak and range-bound this week, Reuters reported.