Gold price falls today despite Omicron’s fears, ₹8,000 less than record high

in global markets, Sleep Rates fell, hurt by a stronger dollar, but concerns over the new Omicron coronavirus pandemic limited losses. Spot gold fell 0.1% to $1,780.36 while spot silver rose 0.3% to $22.37 an ounce.

The dollar index came back strongly as Fed Chair Jerome Powell reiterated that he and fellow policymakers would increasingly consider a windfall reduction in the Fed’s bond-buying program, a move widely regarded as opening the door to earlier interest rate hikes. is seen as. A strong greenback increased the cost of gold for buyers holding other currencies.

On the other hand, a reduction in incentives and an increase in interest rates lead to an increase in government bond yields, increasing the opportunity cost of interest-free gold.

“Gold is struggling to stay above the $1800 per ounce level as support from increased safe-haven buying amid renewed virus concerns counters rising expectations that the Fed will tighten monetary tightening to contain inflation.” Safe-haven buying and inflation concerns could push prices down, said Ravindra Rao, VP-Head Commodity Research, Kotak Securities.

Despite the Omicron uncertainty, ETF investors remained on edge. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 990.82 tonnes on Tuesday from Wednesday.

MyGoldKart director Vidit Garg said gold is struggling after the Fed chief said the US central bank needs to react to the possibility that inflation may not ease in the second half of next year.

Technically gold prices are trading below key moving averages, which indicates that prices may remain under pressure, he added, adding that a break above $1803 will only result in an upward rally. (with agency input)