Title: Gold Down, Omicron Fears Start to Fall

Dec 06, 2021 03:59AM ET

By: AnalysisWatch

Gold costs were down in Asia on Tuesday morning, with a bouncing back dollar and US Treasury security yields keeping the yellow metal in a tight $4 territory.

By 10:52 p.m. ET (3:52 a.m. GMT), gold fates were down 0.06% at $1,778.50.The dollar facilitated marginally on Tuesday however stayed over the $96 level as fears over the new omicron COVID-19 variation gradually started to die down.

Bank of England Deputy Governor Ben Broadbent said on Monday that UK inflation could be "comfortably above" 5% in April 2022 and that a tight labor market could become a more persistent source of inflation.

Investors have found it difficult to predict how the central bank will adjust its monetary policy to curb high inflation. They are now looking ahead to next week, when the US Federal Reserve, the European Central Bank, and the Bank of England will announce their monetary policy decisions for December within 24 hours.

In Asia-Pacific, the Reserve Bank of Australia left its interest rate at 0.10% when it announced its monetary policy decisions later in the day. The Reserve Bank of India followed a day later.

On the data front, Chinese data released earlier in the day showed that exports rose 22% year-on-year in November and imports rose 31.7%. The trade balance stood at $71.72 billion.

The Perth Mint said on Monday that gold product sales rose about 94% in November from the previous month, an eight-month high. The SPDR Gold Trust reported its holdings fell 0.2% to 982.64 tons on Monday from 984.38 tons on Friday.

In other precious metals, silver fell 0.2 percent and palladium 0.3 percent. Platinum was unchanged at $938.00.