Gold and Silver Prices Today: Yellow Metal Rises as WHO Classifies Omicron as Not ‘Soft’

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Gold rose slightly on Friday, approaching a two-week low in the previous session after the head of the World Health Organization (WHO) said the Omicron variant could not be considered ” soft,” while stronger yields capped bullion’s gains.

FUNDAMENTALS
* Spot gold XAU= was up 0.2% at $1,791.73 an ounce at 0100 GMT. US gold futures GCv1 rose 0.1% to $1,791.70.

* The precious metal was poised for its worst weekly fall since late November, down around 2%.

* The more infectious Omicron variant of COVID-19 appears to produce less severe disease than the globally dominant Delta strain, but it should not be classified as “mild”, World Health Organization officials said Thursday. health (WHO). (Full story)

* Alarmed by the persistence of uncomfortably high inflation, even the most dovish US central bankers now agree that they will have to tighten policy this year. (Full story)

* Traders are currently pricing in more than a 70% chance of a rate hike of at least 25 basis points at the Fed’s March meeting, according to the CME FedWatch Tool.

* Benchmark 10-year US Treasury yields hit their highest level since March 2021, while 10-year TIPS yields hit their highest level since June 2021. Higher yields raise the cost of desirability of holding gold. WE/

* Gold is considered a hedge against higher inflation, but the metal is very sensitive to rising US interest rates which increases the opportunity cost of holding non-performing bullion.

* Spot silver XAG= was flat at $22.16 an ounce, platinum XPT= rose 0.2% to $966.85 and palladium XPD= rose 0.1% to 1 $875.78.

DATA/EVENTS (GMT)
0700 UK House prices in Halifax MM Dec
0700 Germany Industrial Production MM Nov
0745 France Reserve assets Total dec
1000 EU HICP Flash YY Dec
1000 EU HICP-X F&E Flash YY Dec
1000 EU Consumer Confid. Final Dec
1330 Non-farm payrolls in the United States December
1330 Unemployment rate in the United States December
1330 Average income in the United States YY Dec


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