Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged up less than 0.1% to close at $1,785.50 as receding omicron worries pressured the dollar, lifting demand for alternative stores of value.

Pfizer/BioNtech reported today that three doses of its covid vaccine effectively neutralized the omicron variant in an "initial lab study." While the standard two-dose regimen "may still offer protection" from severe symptoms, according to Pfizer CEO Albert Bourla, "protection is improved" with a third dose.

With early evidence already suggesting that the omicron strain is less deadly than other variants, if more contagious, the news about added protection further reduced worry that a resurgent pandemic may derail the economic recovery.

Investors cheered the vaccine report, lifting the Dow 0.1% while the S&P 500 and Nasdaq gained 0.3% and 0.6%, respectively. Benchmark 10-year Treasury yields rose on the shift from bonds to stocks, pushing back above 1.5%. Higher yields are a headwind for gold because the increase the opportunity cost for holding the non-yielding asset.

Lifting gold, the dollar fell 0.5% against major rivals as Forex trader shifted toward commodity-related currencies like the Aussie dollar and Norwegian crown. A falling dollar typically supports gold and other commodities by making them less expensive overseas.

The other precious metals were mostly higher, with platinum and palladium adding 0.6% and 0.3%, respectively, while silver slid 0.4%.

At the Comex close: February gold added 80 cents, to $1,785.50; March silver slid 9 cents to $22.43; January platinum picked up $5.60 to $955.90; and March palladium rose $5.40 to $1,852.40 an ounce.