Gold prices rise, near $1,800 level

Gold prices rose today, Nov. 29, with the market sentiment declining due to the new COVID-19 variant Omicron, to approach the $1,800 level per ounce, as the dollar's rise limited the precious metal's further gains.

Fears escalated in global markets about Omicron after the Netherlands, Denmark and Australia announced cases of the new mutant, prompting other countries to impose travel restrictions, the last of which were Japan, New Zealand and the Maldives.

While the World Health Organization (WHO) warned earlier that it would take time to evaluate the new mutant and know its response to current vaccines, while describing it as “worrisome”, according to Reuters.

On the other hand, the President of the Federal Reserve in Atlanta, Raphael Bostic, confirmed that he is still open to accelerating the pace of reducing the asset purchase program, and ending the program by the first quarter or early second quarter next year, if the trend of the economy continues in the same path.

These statements pushed the dollar index - which measures the performance of the US currency against a basket of six currencies - to rise again, limiting the rise in gold prices, as it rose 0.25% to reach 96.3 points.

Gold futures contracts for February delivery rose 0.5% to reach $1,797.9 per ounce at 10:40am Makkah time. Spot price for the yellow metal fell 0.3% to reach $1,796.5 per ounce.

Elsewhere, silver futures for March delivery rose 1.2% to reach $23.4 an ounce. Spot price for platinum delivery rose 1.6% to reach $973.6, while palladium gained 1.4% to reach $1,791.1 per ounce.