Dec 17, 2021 8:44 AM ET
By: AnalysisWatch
Gold prices extended their strong post-FOMC conference rally from the $1,753 area, a more than two-month low, and gained momentum for a third straight day on Friday. The momentum continued in early North American trade, pushing spot prices to a fresh one-month high in the $1.8113 area in the last hour.
As investors put this week's flurry of central bank decisions behind them, the prevailing cautious sentiment was seen as a key factor benefiting safe-haven gold. Concerns about the economic risks posed by the rapid spread of the Omicron coronavirus continued to weigh on investor sentiment. This was reflected in the generally weaker trading sentiment in the equity markets.
The flight to safety triggered a renewed decline in US Treasury bond yields, putting dollar bulls on the defensive and further supporting the low-yielding yellow metal. Apart from this, the momentum could also be attributed to some technical buying on a sustained move above the 200/100-day SMA convergence and the round number of $1,800. With the recent surge, gold has recovered around $60 from the low it reached on Wednesday and seems to be ending the week on a positive note.
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