Gold steady as investors weigh policy prospects, Omicron fears

The Hut predicts slower growth after earnings miss estimates

While the Bank of Japan is seen sitting tight on policy while adjusting its view of inflation risks Tuesday, Governor Haruhiko Kuroda is expected to emphasise his commitment to continued easing in pursuit of the bank’s distant price target.

Gold was consistent as investors gauged the viewpoint for monetary policy against the dangers presented by the omicron virus variant to the worldwide economic recuperation. The Federal Reserve is probably going to bring interest costs up in March, with officials saying they might have to carry out climbs surprisingly quick to control the most hottest inflation since the 1980s. In the mean time, traders are reevaluating a previous opening shot for the main European Central Bank rate expansion in over 10 years.

On the virus front, President Joe Biden’s chief medical adviser on the pandemic Anthony Fauci said it’s too soon to know whether the rapid spread of the new variant will hasten the end of the health crisis.

Gold is holding above $1,800 an ounce after dropping for the first time in three years in 2021 amid the prospects of monetary policy tightening and the deployment of vaccines. Still, bullion’s traditional role as an inflation hedge and the uncertainty over omicron’s impact is supporting demand for the haven asset.

Spot gold was little changed at $1,819.08 an ounce by 8.03am in Singapore, after rising 0.1 per cent on Monday. The Bloomberg Dollar Spot Index was steady after adding 0.1 per cent in the previous session.

Silver and palladium were flat, while platinum advanced.

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