Gold prices rose on Tuesday, trying to rebound after posting the largest daily loss in a month and a half, with support above the $1800 barrier, but gold is still under pressure as the US dollar rose against its peers, and due to weak safe haven demand.
Gold prices rose 0.4% to $1,808.60, after opening at $1,801.31, and hit a day high at $1,798.31.
Gold closed lower by 1.5% yesterday, the first daily loss in 3 days, and the largest daily loss since last November 22.
This daily loss came due to profit-taking from a 6-week high at 1,831.65 points hit earlier, and rising US dollar.
The dollar index rose 0.1% today, which lowers demand for gold and dollar-denominated metal prices.
This US dollar is rebounding as odds receded for a full nationwide lockdown to limit the spread of the Omicron variant in the US, especially after several scientific studies showed lower health risks from the new variant compared to other variants such as Delta.
The US dollar is being lifted by growing odds that the Federal Reserve will raise US interest rates by 25 basis points next May, with two more hikes during the second half of this year.
Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at 975.66 metric tonnes.