Gold stagnates as weaker US yields balance the stronger dollar

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  • Japanese stocks fall amid Omicron concerns
  • Palladium hits its highest level in a month
  • Gold faces resistance just above $ 1,815 an ounce – analyst

Dec. 27 (Reuters) – Gold held above the key level of $ 1,800 an ounce on Monday as its increased appeal due to slightly weaker US Treasury yields was offset by a rise in the dollar, making it bullion more expensive for holders of other currencies.

Spot gold was flat at $ 1,807.90 an ounce at 8:15 a.m. GMT, remaining mostly ahead of $ 1,800 since closing above that level last week.

US gold futures fell 0.1% to $ 1,809.40.

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Benchmark US Treasury yields edged down from the more than a week high the previous session, lowering the opportunity cost of holding bullion, which earns no interest.

The dollar index (.DXY) edged up from its lowest level in nearly a week, making gold at the greenback price less attractive to holders of currencies other than the United States.

“Gold is facing resistance just above $ 1,815 and if the recent past is any indication, gold will continue to struggle to hold gains at these levels unless the US dollar drops sharply. week, ”said Jeffrey Halley, senior market analyst at OANDA.

Asian stock markets were generally weaker with US crude in thinning trading during the holidays as uncertainty over the economic impact of the Omicron variant weighed on investor sentiment.

“What’s going on with inflation and the US Federal Reserve’s response to it is really the main catalyst that makes it difficult to find directional momentum,” said DailyFX currency strategist Ilya Spivak.

However, although overall calm this week, “low liquidity makes headline sensitivity more pronounced as weak markets are likely to make price action more choppy if something were to happen,” added Spivak.

Japanese stocks fell on Monday as concerns over the impact of the Omicron COVID-19 variant offset gains in heavyweight tech stocks. Read more

Spot silver fell 0.8% to $ 22.75 an ounce and platinum fell 1.9% to $ 956.11.

Palladium fell 0.4% to $ 1,941.38 an ounce, after hitting its highest level since November 23 at $ 1,962.50 earlier in the session.

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Reporting by Bharat Govind Gautam and Seher Dareen in Bengaluru; Editing by Richard Chang and Vinay Dwivedi

Our standards: Thomson Reuters Trust Principles.


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