Gold prices fall as new virus variant raises curbing demand for safe havens.

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Whilst the World Health Organization urged caution, gold plummeted as some fears about the omicron coronavirus strain faded.

Two South African health specialists, including the doctor who originally raised the omicron alarm, believe the variation is now causing only minor symptoms.

However, the WHO stated on Sunday that determining the severity of the new strain would take time, and that the first cases of illness were among university students, with younger people exhibiting milder symptoms.

Bullion has erased its November rise and is nearly back to where it started the month as investors assessed the possibility of the Federal Reserve eliminating policy assistance at a faster pace to keep inflation under control against the impact of the omicron strain on the global economy.

President of the Federal Reserve Bank of Atlanta, Raphael Bostic, downplayed the new variant’s impact on the US economy. By 7:59 a.m. in Singapore, spot gold had fallen as much as 1.3 percent and was trading 0.4 percent lower at $1,795.26 an ounce.

After a 0.3 percent drop on Friday, the Bloomberg Dollar Spot Index stabilized, while the S& P 500 and Nasdaq 100 contracts rose, and oil prices recovered. Platinum increased by 2.4 percent, silver by 0.7 percent, and palladium by 0.9 percent.

Story by : Norvisi Mawunyegah