Gold price holds steady as investors assess omicron risk

Gold prices held steady on Monday, hovering close to a three-week peak, as the spread of the omicron coronavirus variant continues to smother investors’ appetite for riskier assets, lifting bullion’s safe-haven appeal.

Spot gold stayed relatively level compared to the previous session, down 0.1% at $1,795.72 per ounce by 11:55 a.m. ET. US gold futures declined 0.5% to $1,794.50 per ounce.

Risk aversion was evident across financial markets over the past few days, with Europe’s biggest countries introducing more restrictions to fight a surge in covid-19 infections. As a result, European stock markets tumbled amid a global sell-off in equities.

But moves in gold were likely to be remain muted, in part due to thinning liquidity into the year-end, analysts said.