Title: Gold Up, Weakening Dollar Outweighs Positive Omicron Study

Dec 22, 2021 04:36AM ET

By: AnalysisWatch

Gold prices rose in Asia on Thursday morning, holding steady in holiday-related weak trading. A weaker dollar offset renewed investor risk appetite on an encouraging omicron COVID-19 variant study that boosted optimism about the global economic recovery.

Gold futures rose 0.24% to $1,806.45 an ounce at 10:28 PM ET (3:28 AM GMT), giving the yellow metal a 0.5% gain for the second straight week.

The dollar, which normally moves inversely to gold prices, edged lower on Thursday.

A South African study, which has yet to be peer-reviewed, found a lower risk of hospitalisation and serious illness among people infected with the Omicron variant than the Delta variant. The US on Wednesday also granted emergency approval for paxlovid, the COVID-19 antiviral pill from Pfizer Inc.

Meanwhile, US data released on Wednesday showed that GDP grew 2.3% quarter-on-quarter in the third quarter of 2021. Existing home sales were 6.46 million in November, and the Conference Board Consumer Confidence Index was 115.8 in December.

Other data due later in the day includes initial jobless claims, new home sales, durable goods orders, the PCE price index, personal income and spending, as well as the University of Michigan consumer sentiment index and the Michigan consumer expectations index.

In Asia-Pacific, Bank of Japan Governor Haruhiko Kuroda spoke earlier in the day.

However, the gold market is expected to be "choppy and noisy," trading between resistance at $1,810 and support at $1,760, Avtar Sandu, senior manager for commodities at Phillip Futures Pte., said in a report.