Gold price traded above $1,790 during the day. Although the emergence of a new coronavirus variant in recent days has led to a wave of sales, it has not found much support. Also, gold is likely to rise, according to one analyst.
Chintan Karnani: Gold price could climb to $2,000
Insignia Consultants research director Chintan Karnani says a global lockdown caused only by the omicron variant will affect precious metals, stocks and bonds. If there is an omicron-induced quarantine in Europe, the UK and North America, gold is likely to break the $1,900 level and climb to around $2,000. “Traders have taken profits on long gold positions to meet margin calls on stocks and bonds,” Karnani says.
According to Karnani, the failure of the precious metal to trade above $1,800 despite news of the novel coronavirus variant “may be due to gold trading on a softer trend or bearish.” The most actively traded contracts fell 3.6 percent last week and have not risen above $1,800 since November 22, according to FactSet data.
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As we reported , gold rose on Friday, but the World Health Organization’s technical advisory group is due in the session after Thanksgiving as the World Health Organization’s technical advisory group has declared the omicron a “concern variant” with several countries imposing flight bans from countries in southern Africa. Most of the gains seen declined. Karnani said the big challenge for the market is the “interest rate outlook of central banks for the coming year” in light of the novel coronavirus variant. The prospect of a deferred rate hike for 2022 “will cause stock prices and inflation to rise,” he said.