Finance

Gold Down but Up from Three-Week Low, Omicron Concerns Grow



© Reuters.

By Gina Lee

Investing.com – Gold was down on Thursday morning in Asia, but was climbed up from a three-week low. Investors are mulling how central banks are likely to respond to surging inflation, while concerns are also growing about the risk posed by the newly discovered omicron variant of COVID-19 to the global economic recovery.

edged down 0.18% to $1,781.15 by 10:34 PM ET (3:34 AM GMT). The , which normally moves inversely to gold, inched down on Thursday.

The U.S. Federal Reserve must prepare for the possibility that inflation may not recede in the second half of 2022 as most forecasters currently expect, Chairman Jerome Powell said on Wednesday. He testified before the House Financial Services Committee on Wednesday alongside U.S. Treasury Secretary Janet Yellen, after the duo testified before a Senate Banking Committee hearing the day before.

Omicron could extend some of the supply-chain challenges and shortages that have led to higher inflation, and officials will need to factor that in as they decide how to withdraw their monetary policy support, said New York Fed President John Williams.

Although the Fed has adopted a more hawkish tone to inflation, the Bank of England and European Central Bank are sticking to their dovish tones.

On the data front, the was a higher-than-expected 61.1 in November.

In Asia Pacific, South Korea’s grew a higher-than-expected 3.7% year-on-year in November.

SPDR Gold Trust (P:) said its holdings fell 0.2% to 990.82 tons on Wednesday from Tuesday.

In other precious metals, silver was up 0.3%, platinum edged up 0.2% and palladium gained 0.4%.

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