The golden yellow metal rebounded after failing to maintain its consolidation once it touched its latest high in the previous session.
Gold has been trading higher since November as concerns about the Omicron coronavirus variant and uncertainty about the effectiveness of policies to combat inflation that hit the market boosted its attractiveness as a safe-haven and inflation hedge.
This indirectly pushes investors to increase purchases of government bonds thus driving yields lower. The weaker US dollar, meanwhile, has provided little support for the rising gold precious metal.
However, the US dollar gained little support on Tuesday, putting pressure on gold and other riskier assets even as bond yields continued to weaken.
Gold trades, which initially managed to touch the $ 1,820 per ounce price level, fell lower again to trade around $ 1,805 per ounce in today’s Asian session.
Overall, gold still looks strong by maintaining its position above the $ 1,800 price tag. However, investors need to be cautious due to the high price volatility factor ahead of the close of 2021 trading.
