NEW YORK: Gold rose on Wednesday, tracking a retreat in the dollar as investors used a pullback in the previous session to buy bullion as a hedge against wider market volatility amid concerns over the impact of the Omicron coronavirus variant. Spot gold was up 0.4% to $1,780.05 per ounce by 2:33 p.m. Concerns over the virus variant are supporting gold as fresh restrictions will slow the global economy, with a weaker dollar also boosting demand for the safe-haven metal, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago. "Choppy markets with underlying anxiety should also be supporting gold prices more but its inability to drag itself back above $1,800 isn't a great sign." Some investors view gold as a hedge against higher inflation, but reduced stimulus and interest rate hikes push government bond yields up, raising non-interest bearing gold's opportunity cost.

Source: The Star December 02, 2021 05:36 UTC