Gold prices fell on Thursday to mark the lowest level since mid-October, after several days of volatile trading since the announcement of Covid’s new variant Omicron late last week. The opinions of 4 analysts evaluating the developments in the markets Cryptocoin. com for our readers.
“Until there is clarity, traders remain in the dark for now”
Chintan Karnani, research director of Insignia Consultants, said in a statement that most traders and investors believe that the Omicron variant “will not cause catastrophic damage to the global economy.” According to the research director, they prefer stocks over safe havens like gold. Also, Chintan Karnani comments:
Technical traders are not buying either, as short-term techniques tend to be bearish.

Chintan Karnani says “traders remain in the dark” for now until “clarification” about Omicron comes from the World Health Organization and adds the following assessment:
Gold and safe havens are not included in their short-term portfolios. Some traders are also sitting on cash only in the last month of the year.
Jim Wyckoff: Uncertainty can put a bottom on gold prices
Kitco Metals senior analyst Jim Wyckoff, pointing to the decline in crude oil prices, comments, “Fed policy change and the expectation that inflation fears will decrease, took the wind from the sail of the gold bulls.”

The precious metal seemed to be taking cues from rising bets that early rate hikes will flatten its yield curve, turning into the higher opportunity cost of holding unyielding gold and curbing future inflation. Jim Wyckoff thinks uncertainty can lay a base for yellow metal:
The gains in the equity markets may indicate increased risk appetite, while further volatility in equities could put a foothold on safe-haven gold prices, especially amid continued uncertainty over the Omicron coronavirus variant.
Naeem Alsam: Gold prices could rise if Omicron cases continue to rise
Gold is struggling to gain additional momentum from this option as precious metals are trading down 1.3% this week. AvaTrade chief market analyst Naeem Aslam states in a market assessment that gold prices could rise:
With markets in turmoil and investor behavior becoming extremely volatile, gold prices could rise if Omicron cases continue to rise.

According to Michael Hewson, the prospect of a faster tapering could set a cap for gold
The price of bullion slid more than 1% to a one-month low on Thursday as investors locked on signs of an apparently hawkish slope in U.S. monetary policy that could rein in rising consumer prices in the future. Although Wall Street rebounded on the backing of financial stocks, rising virus variant cases globally continued to add to volatility in the markets.
Michael Hewson, chief market analyst at CMC Markets UK, states that the expectation of a faster tapering could create an upside cap for bullion and increase the US dollar and Treasury yields, further increasing the attractiveness of gold.