(Bloomberg) — Gold held an advance as the dollar weakened, while silver got a boost from signs of an improving U.S. economy.
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The Bloomberg Dollar Spot Index steadied on Thursday after its biggest three-day drop since the end of November, boosting bullion’s appeal. Silver held gains after the final U.S. gross domestic product reading was revised higher, bolstering the outlook for metals exposed to industrial production.
Still, investors are grappling with uncertainty about how the omicron virus strain will impact global economies. Studies have signaled it may be less likely to land patients in the hospital than the delta variant, but officials worldwide remain cautious and are rolling out restrictions to try and curb its spread.
“The gold market is expected to be choppy and noisy,” trading between resistance at $1,810 an ounce and support at $1,760, Avtar Sandu, a senior manager of commodities at Phillip Futures Pte., said in a report. “Momentum is lacking and prices most likely will consolidate” until year-end. Silver and other precious metals used for industrial purposes look set for a revival as investors look past omicron, he said.
Bullion is heading for the first annual loss in three years as central banks reduce pandemic-era stimulus to fight surging inflation. Spot prices advanced 0.2% to $1,806.65 by 9:56 a.m. in Singapore.
Silver was little changed after rising 1.3% on Wednesday. Palladium declined 0.8% after surging more than 7% in two days, while platinum was steady after a 3.2% climb on Wednesday.
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