Gold Wavers After Reaching Two-Month High as Dollar Rebounds
(Bloomberg) -- Gold wavered after touching the highest in almost two months as the dollar rebounded.
The metal rose earlier as signs that the omicron variant is having a bigger impact on the labor market helped boost demand for bullion as a store of value. Those gains diminished as a strengthening dollar sapped demand.
Gold has managed to gain this month even as central banks prepare to dial back stimulus and inflation-adjusted bond yields rise. Whether it holds its gains will depend on it garnering interest from investors. Holdings in exchange-traded funds back by the metal rose the most since November on Wednesday, according to an initial tally by Bloomberg.
The miss in U.S. jobless claims data isn’t going to change the Federal Reserve’s tightening policy, said Ole Hansen, head of commodities strategy at Saxo Bank. “They have their work cut out with the White House clearly on a war path looking for measures to bring inflation lower.”
President Joe Biden said it’s the Federal Reserve’s job to rein in the fastest pace of inflation in decades, and supported its plans to scale back monetary stimulus. Policymakers for the central bank meet next week.
Spot gold slipped 0.1% to $1,838.93 by 3:33 p.m. in New York after touching the highest since Nov. 22. Bullion for April delivery fell less than 0.1% to settle $1,844.90 on the Comex. Silver climbed, after rising 2.9% the previous session. Platinum and palladium also extended gains.
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