Gold futures had its biggest increase since February 2021. Gold prices increased by 16.50 USD, equivalent to 0.92% and remained at 1,805.20 USD.
The world gold price is currently anchored near the highest level of the day at 1,806.80 USD/ounce, far from the lowest level in the session at 1,785.80/ounce.
The precious metal grew thanks to the US dollar and weak US bond yields. Accordingly, the US Dollar Index (DXY) measuring the fluctuations of the greenback against 6 major currencies decreased to 96.5 points.
The latest data from the US Department of Labor shows that gross domestic product (GDP) increased at an annual rate of 2.3% in the third quarter, the slowest since the second quarter of 2020. However, overall economic activity is still on the rise, helping the US on track to record its strongest growth year since 1984.
The US economy grew rapidly at 6.3% annual in the first quarter of this year and 6.7% in the third quarter, as the limitations of the COVID-19 pandemic were pushed back, the explanation shows. But the spread of Delta variants in the summer has slowed down recovery in the third quarter.
In other developments, investors are struggling with uncertainty about how Omicron variation will impact the global economy. Studies show that it is less likely to cause hospitalizations than Delta variation. But officials around the world are still cautious and taking measures to limit the spread of the virus.
Mr. Ravi Singh - Vice President & Head of Research at Share India brokerage - commented: "Demand for gold this season has partly driven the increase. The attractiveness of being a safe haven against inflation and uncertainty about Omicron variants are keeping gold prices on the rise."
Gold and silver prices are heading for their first annual loss in three years as central banks reduce monetary stimulus to combat rising inflation.
Commenting on gold prices, Mr. Avtar Sandu - senior director of commodities at financial company Phillip Futures Pte - said: "The gold market is expected to fluctuate strongly between the resistance level of 1,810 USD and support of 1,760 USD. The momentum is lacking and prices will likely continue to enter the hoarding phase until the end of the year".
