Gold futures closed higher on Friday (Nov. 26) on news of the new Covid 19 variance in South Africa. This encourages investors to buy gold as a safe haven.
- Gold contract was up $1.2, or 0.07%, at $1,785.5 per ounce. But gold futures fell 3.6% this week.
- Silver metal contract for delivery in December fell 38.9 cents, or 1.66%, to close at $23.107 an ounce.
- Platinum contract delivered in Jan. fell $21, or 2.15 percent, at $954.3 per ounce.
- Palladium contract delivered in December was down $58.80, or 3.18%, at $1,789.10 an ounce.
WHO held an emergency meeting yesterday and announced that a new Covid 19 variant called B.1.1.529 or Omicron has been discovered. It is said to be a strain of concern of the COVID 19 variant. First detected in South Africa and among travelers in Hong Kong and Israel, the new virus has been identified.
“This could lead to lockdowns and new restrictions and of course, new vaccinations are needed as well.” Bipan Rai, North says American Head of FX Strategy at CIBC Capital Markets in Toronto.
In addition, the sharp decline in the U.S. stock market on Friday helped to support the purchase of gold contracts as well.
Investors pounced on the Japanese yen and Swiss franc Friday on news of the new COVID variant that could be resistant to current vaccines. As for traders, they made profits after the previous USD rise.
The yen recovered from a five-year low against the dollar this week, rising nearly 2% to a high of 113.09, its best day since March 2020.
The euro rose by 0.97% to a high of $1.1312. Against the resurgent Swiss franc, however, it fell to its lowest level in more than six years at 1.0428 francs per euro.
The dollar index weakened 0.75% to 96.030 after hitting a 16-month high of 96.938. As investors are increasingly betting that the Federal Reserve will start raising interest rates in mid-2022 to combat stubbornly high inflation.
The pound fell to a new 2021 low at $1.3278 on concerns that no interest rate change will take place in December.
The Spot Market is Closed
Saturday, November 27, 2021