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Dec. 27 (Reuters) – Gold prices slipped from a week-long high in thin trading on Tuesday as concerns eased over the Omicron coronavirus variant and strong data on retail sales in United States have stimulated the appetite for risk.
Spot gold was down 0.1% to $ 1,809.68 an ounce at 04:57 GMT, after hitting its highest level since December 17 on Monday. US gold futures rose 0.1% to $ 1,810.90.
“There is a lack of participation. So any little nugget of correlation between markets is going to move the markets,” said Stephen Innes, Managing Partner at SPI Asset Management.
“What will be at the heart of the argument, and which will likely limit the bullish momentum for gold, are real rates, which could rise as the economy recovers from this little slippage they’ve had on. Omicron. “
Asian stocks gained ground, following on from another record-breaking day on Wall Street amid strong retail numbers, while the safe-haven yen lost ground as traders edged down. remained in riskier currencies and asset classes like stocks.
Crude oil prices have gained ground over expectations that the Omicron variant would have only a limited impact on global demand.
The US dollar, also seen as a safe haven, was languishing near the bottom of its recent trading range against a basket of peers, maintaining the attractiveness of gold at the greenback price for holders of non-US currencies and limiting losses.
The two-year Treasury yield, which is highly sensitive to interest rate expectations, hit its highest level in nearly 22 months in Tokyo, raising the opportunity cost of holding bullion, which earns no interest.
The aggressive erosion of some central banks is limiting the rise in gold, but the decline has not been as severe as in the past, so gold’s fundamental strength is visible, said Kunal Shah, official. of research at Nirmal Bang Commodities.
Spot silver fell 0.2% to $ 22.99 an ounce, platinum fell 0.2% to $ 968.14 and palladium fell 0.9% to 1,952.05 $.
Reporting by Bharat Govind Gautam and Seher Dareen in Bengaluru; Editing by Vinay Dwivedi
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