Gold edges higher, attempts to grab 2 session skid
Gold trades a little higher on Wednesday morning in the penultimate session before a holiday break. Many markets around the world will be closed on Friday for Christmas.
Bullion lost control of $ 1,800 in recent sessions amid troubled low liquidity trading ahead of the final sessions of 2021 marked by concerns about the spread of the Omicron variant of the coronavirus that causes COVID-19 and the response of global central banks to signs of rising inflation.
After hitting a short-term high in mid-November, gold futures traded largely sideways, hovering between around $ 1,760 and just over $ 1,800 an ounce.
February Gold GCG22,
was trading 0.1% or $ 2.40 early Wednesday and was trading at $ 1,791.10 an ounce when it was last reviewed 0.3% in the previous session.
“Gold’s trading range is around $ 1,800 at the end of the year, and this should remain intact as trading volumes decline,” wrote Edward Moya, senior market analyst at Oanda Corp., in a press release on Wednesday.
“The long-term outlook for gold remains bullish as investors may have been aggressively pricing in the Fed’s tightening for the next year,” the analyst wrote.
Meanwhile March silver SIH22,
traded 13 cents, or 0.6%, at $ 22.66 an ounce, after rising 1.1% on Tuesday.
For the week, gold is heading for a weekly decline of 0.8%, while silver has so far been on track with a gain of 0.5%, according to FactSet data based on the most active contracts.