Gold is Hovering Near Its Highest Level in 3 Weeks Due to Omicron

Gold prices stabilized on Monday, approaching three-week highs recorded last week, as fears of the rapid spread of the mutated Omicron from the Coronavirus boosted the appetite for buying the precious metal as a safe haven for value. And gold settled in spot transactions at $ 1798.60 an ounce by 0807 GMT, while US gold futures fell 0.3 percent to $ 1800.10 an ounce. In the previous session, the price of gold rose to its highest level since November 26.

Gold is often seen as a hedge against inflation and geopolitical turmoil, but a Federal Reserve interest rate hike would increase the cost of acquiring non-yielding gold.

Asian stocks fell as outbreaks of Omicron cases prompted new restrictions in Europe.

Silver fell 0.2 percent to $22.31 an ounce, palladium fell by about one percent to $1,699.17, while platinum also fell one percent to $921.48 an ounce.