Gold clings around $1,800

Gold prices hovered around the key $1,800-per-ounce level on Thursday ahead of the year-end holidays, even as the dollar steadied and appetite for riskier assets improved on easing fears over a fallout from the Omicron coronavirus variant.

Spot gold was up 0.4 per cent to $1,809.89 per ounce by 1841 GMT, while US gold futures settled up 0.5 per cent at $1,811.70 per ounce.

“This is just noise on a low-volume day ahead of Christmas,” said Daniel Pavilonis, a senior market strategist at RJO Futures.

He added that next year was bound to be good for gold, especially with high inflation likely to persist. Taking some shine off bullion, the dollar index steadied, making the metal less appealing for overseas buyers.

But the greenback was near a one-week low and its recent retreat helped gold stay on course for a small weekly gain.

Global shares, bond yields and riskier currencies all hit recent highs on Thursday as investor confidence grew on signs that Omicron might be less severe than feared, as well as robust US economic data.

“Gold faces technical resistance at $1,815 and $1,826, with geopolitical risks ahead potentially keeping gold supported, despite the tapering narrative,” said Nicholas Frappell, a global general manager at ABC Bullion.