Gold has been shaking off bullish omicron fears and the bearish physical market from a more aggressive Federal Reserve, according to Standard Chartered precious metals analyst Suki Cooper.
“Gold has been caught between moderating Fed rate-hike expectations (triggered by Omicron news) and safe-haven demand amid stagflation risks on the one hand; and a softer physical market (on fading seasonal demand) and fears of accelerated rate hikes on the other,” Cooper said on Monday.
“Gold has shifted lately to tracking real yields more closely than the USD. While this should provide greater upside risk to gold over the medium term, conviction is low in the near term,” she said.