Gold price rises amid Omicron worries and weakening dollar

Gold prices rose on Tuesday as a weaker dollar and risks to global economic growth associated with a surge in cases of the Omicron coronavirus strain increased the metal’s appeal as a safe haven.

The spot gold price was up 0.37% to $1.796 a troy ounce by 1:44 p.m. MSC.

While the decline in the dollar has helped gold, “markets are still reluctant to raise spot prices significantly, knowing that Treasury yields could still jump due to next year’s upcoming U.S. Federal Reserve rate hike,” said Exinity’s Han Tan.

“However, the precious metal could attract additional demand in 2022 if inflation expectations remain stubbornly high and nominal yields remain constrained.”

Palladium rose 4.45% to $1,826.91 an ounce and silver added 1.88% to $22.65 an ounce. Platinum rose 0.88% to $940.43.