Gold surged to its highest price level in over a month on Tuesday, touching highs of $1,815.50 per ounce.
Gold prices are poised for further pressure below $1,800 per ounce on Wednesday as the precious metal eases from its highest peak in over a month reached on Tuesday.
The losses come as a firm dollar and investors’ appetite for risk-on assets persists this week despite Omicron fears. The greenback’s outlook and the suggestion that a Santa rally might still push the S&P 500 to another record close have negatively weighed on the precious metal’s price.
Spot gold fell 0.8% to $1,792.71 per ounce, down from the $1,815.50 per ounce hit in the previous session. The retreat follows a close at $1,805.85 per ounce on Tuesday.
Meanwhile, gold futures are also down, with losses at 1% to $1,792.21.
In other metals, spot silver fell 1.8% to $22.70, while copper was down 0.4% to 4.40.
Oil and Bitcoin also slip
Oil prices are down 0.5% to $76.50 per barrel on Wednesday, derailing Tuesday’s trajectory that had the commodity eyeing the $80.00 per barrel mark.
Weaker crude prices are likely as the markets face falling demand amid potential tougher restrictions on the health front due to the impact of Omicron.
Brent crude has shed about 20 cents from its highs around $78.94 per barrel, currently about 0.4% down. The West Texas Intermediate (WTI) crude is down to $75.61 per barrel after losing nearly 0.5% over the past session.
In cryptocurrencies, Bitcoin has sharply declined from highs near $52k, having reached $51,957 earlier in the week. The cryptocurrency has fallen to lows of $46,647.85 on the day after losing support at $50,000 during the previous session.
Bitcoin is, at the time of writing, 3% down in the past 24 hours, with weekly losses now at 3% and 30-day losses around 17%. However, BTC remains profitable in 2021 with nearly 73% in returns.
In Europe, stocks are mixed with the FTSE 100 seeing notable gains at +0.7%. The pan European Stoxx 600 index is poised at -0.05% while Germany’s DAX is struggling around 0.5% in red and the French CAC 40 has shed 0.2%.
Further losses could see European shares close lower to track similar action in Asia where markets closed with the Shanghai Composite down 0.9% and Japan’s Nikkei 225 at -0.6%.
US markets have opened higher though and investors will be keen to see if stocks rebound following Tuesday’s broader declines.