By Gina Lee
Investing.com – Gold was up on Thursday morning in Asia, holding steady in holiday-thinned trade. A weaker dollar offset investors’ renewed risk appetite, attributable to an encouraging study about the omicron COVID-19 variant that increased optimism around the global economic recovery.
Gold futures were up 0.24% to $1,806.45 by 10:28 PM ET (3:28 AM GMT), with the yellow metal set for a second weekly gain at 0.5%.
The dollar, which normally moves inversely to gold, inched down on Thursday.
A South African study, which is yet to be peer-reviewed, said reduced risks of hospitalization and severe disease in people infected omicron variant versus the delta variant. The U.S. on Wednesday also gave emergency use authorization for Paxlovid, Pfizer Inc.'s (NYSE:PFE) antiviral COVID-19 pill.
Meanwhile, U.S. data released on Wednesday showed that the GDP grew 2.3% quarter-on-quarter in the third quarter of 2021. Existing home sales were at 6.46 million for November and the Conference Board Consumer Confidence index was at 115.8 for December.
Further data due later in the day include initial jobless claims, new home sales, durable goods orders, the PCE price index, personal income and spending, as well as the University of Michigan consumer sentiment and Michigan Consumer Expectations indexes.
In Asia Pacific, Bank of Japan governor Haruhiko Kuroda spoke earlier in the day.
However, “the gold market is expected to be choppy and noisy,” trading between resistance at $1,810 an ounce and support at $1,760, Phillip Futures Pte. senior manager of commodities Avtar Sandu 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, the report added.
Silver inched up 0.1%, and platinum was up 0.3%, while palladium fell 0.7%.