Gold prices jump today as Covid concerns increase demand for the yellow metal

In global markets, spot gold rose 1% to $1,805.56 an ounce. Also helping gold climb, the dollar index declined 0.2% from a 16-month peak earlier this week, while the US benchmark 10-year Treasury yield also weakened. A weaker dollar lowers the cost of gold for buyers holding other currencies.

Among other precious metals, spot silver held steady at $23.57 an ounce, while platinum fell 1.2% to $983.22.

Geojit said in a note that as long as gold holds the $1780 support, a turnaround is possible, but an unexpected decline below it will negate the trend and end further.

On Silver, “A choppy trade is expected within the $25.50-23 level to begin with. Breaking either side would suggest a new short-term direction.”

The spread of the new version in South Africa and some other countries has prompted the UK and a growing number of other countries to quickly impose travel restrictions on the African nation.

Scientists from the World Health Organization and South Africa are studying the recently identified variant, which has been described as very different from previous versions and of serious concern.

Equities sold today as tensions eased on top of concerns in markets about high inflation and the prospect of an early exit from ultra-lax monetary settings.

The World Health Organization is convening a meeting of experts later today to evaluate whether the new version poses a “type of concern.”

US crude futures fell 5.7% to $73.96 a barrel and Brent crude by 4.66% to $78.38 amid fears of fresh demand.

Covid concerns pushed investors to the safe-haven asset as the yen jumped more than 1% to about 113 per dollar, hitting a five-year low earlier this week. (with agency input)