Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close just under $1,805, its highest finish in almost a month, as weaker equities and rising omicron concerns boosted safe-haven demand despite a stronger dollar. The metal picked up 1.1% for the week.

A new study out of the UK by the Imperial College of London concluded that the omicron variant of the coronavirus is more than five times riskier for reinfection than the delta and shows no signs of being milder in its symptoms. In addition, the study found a significantly increased risk of symptomatic omicron cases compared to delta even among those who have been fully vaccinated with a booster dose.

The alarming news comes as holiday travel ramps up and much socializing moves indoors for the winter, increasing the likelihood of further transmission.

The Dow fell more than 300 points on risk-off sentiment as investors weigh the impact of the omicron and increasing hawkishness of global central banks. Benchmark 10-year Treasury yields fell as low as 1.39% on the shift toward safety, reducing the opportunity cost for holding gold instead of bonds.

Capping gold's rise, the dollar added 0.5% against major rivals as Forex traders shifted away from risky currencies. A stronger dollar creates a headwind for gold by making it pricier overseas.

The other precious metals were also higher for the day and week. Silver added 0.2% for a weekly rise of 1.5%. Platinum picked up 0.6% to clinch a weekly rise of 30 cents. Palladium climbed 3.6% today and 2% this week.

At the Comex close: February gold gained $6.70 to $1,804.90; March silver added a nickel, to $22.53; January platinum picked up $5.60 to $934.50; and March palladium climbed $62 to $1,784.80 an ounce.