Gold Stocks High amid Concerns about Omicron’s Impact on Global Economic Recovery

Gold surged on Tuesday as traders attempt to ascertain the effect of mounting COVID-19 cases on the highly anticipated global economic recovery set to prevail next year.

The S&P 500 futures hit its 69th record of 2021 as the year draws to a close which is indicative of persisting optimism among investors. In London, spot gold gained by 0.2% with $1815.87 per ounce, while Bullion dropped by over 4%. While palladium dipped by 0.7%, platinum and silver experienced highs.

According to Madhavi Mehta, a Senior Analyst at Kotak Securities Ltd., “Gold has turned range-bound near $1,810 an ounce, reflecting the relative stability in the U.S. dollar index and bond yields amid a lack of fresh triggers.” However, Mehta did acknowledge that restrictions due to the current Omicron surge are “a cause of concern” for the economy.

Although a global record of COVID-19 cases surpassed 1.44 million on Monday, the U.K. has stated that it will not be implementing any additional restrictions before the year ends. The U.S. has also slashed the official quarantine period for COVID-positive Americans from 10 days to five days.