Gold prices turned higher in trading today, Tuesday. After it had started the session with a decline from its highest levels in a week.
The precious metal had ended Monday’s trading with a limited decline, with the easing of concerns about the new Corona virus, Omicron. And the strong US retail sales data, which led to the strengthening of risk appetite.
Gold Prices Today
The price of gold futures contracts – February delivery – increased by 0.39%, equivalent to 7 dollars, to reach the level of 1815.80 dollars an ounce.
The spot price for the yellow metal also rose by 0.11%, recording $1,814.12 an ounce.
At the same time, the price of silver futures contracts – for March delivery – increased by 0.53%, recording $23.11 an ounce.
While the spot platinum price fell by 0.34%, recording $971.37 an ounce. While the spot palladium price fell by 2.23%, to record $130.27 an ounce.
“There is a state of caution, with the increase in cases of corona, however the risk increases that is working to limit the bullish momentum for gold,” said Stephen Innes, managing partner at EBI Management.
Asian stocks gained, navigating another record day’s trajectory on Wall Street amid strong retail sales numbers, while the safe-haven yen lost ground, as traders remained in riskier currencies and asset classes like stocks.
Crude oil prices also gained strength from expectations that the Omicron mutator will have a limited impact on global demand.
The US dollar, which is also seen as a safe haven, was weak near the lower end of its recent trading range against a basket of peers, maintaining the attractiveness of dollar-denominated gold to non-US currency holders.
The two-year Treasury yield, which is highly sensitive to interest rate expectations, also jumped to a nearly 22-month high in Tokyo, raising the opportunity cost of holding bullion, which pays no interest.
Narrow tapping of gold by some central banks is limiting gold’s upside, but the downside hasn’t been as sharp as in the past, so gold’s underlying strength is clearly visible, Reuters reported.