Gold hit its highest price point in more than a month on Tuesday, hitting highs of $ 1,815.50 an ounce.
Gold prices are on the verge of further pressure below $ 1,800 an ounce on Wednesday as the precious metal moves away from its highest in more than a month reached on Tuesday.
The losses come as the dollar is firm and investor appetite for risky assets persists this week despite Omicron fears. The outlook for the greenback and the suggestion that a Santa rally could push the S&P 500 to yet another record close weighed negatively on the metal price precious.
Spot gold fell 0.8% to $ 1,792.71 an ounce from $ 1,815.50 an ounce reached in the previous session. The pullback follows a close at $ 1,805.85 an ounce on Tuesday.
Meanwhile, gold futures are also down, with losses of 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 are also slipping
Oil prices fell 0.5% to $ 76.50 per barrel on Wednesday, derailing Tuesday’s path that had commodity hitting the $ 80.00 per barrel mark.
Lower crude prices are likely as markets face falling demand amid potential tighter restrictions on the health front due to the impact of Omicron.
Brent crude is down about 20 cents from its highs of around $ 78.94 a barrel, currently down about 0.4%. West Texas Intermediate (WTI) crude is down to $ 75.61 a barrel after losing nearly 0.5% in the last session.
In cryptocurrencies, Bitcoin has fallen sharply from highs near $ 52,000, hitting $ 51,957 earlier in the week. The cryptocurrency fell to a low of $ 46,647.85 on the day after losing support at $ 50,000 in the previous session.
Bitcoin is, at the time of writing, down 3% over the past 24 hours, with weekly gains now at 3% and 30-day losses of around 17%. However, BTC remains profitable in 2021 with almost 73% returns.
In Europe, equities are mixed, with the FTSE 100 recording notable gains at + 0.7%. The pan-European Stoxx 600 index stands at -0.05% while the German DAX is struggling around 0.5% in the red and the French CAC 40 has lost 0.2%.
Further losses could see European stocks close lower to follow 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, however, and investors will be eager to see if stocks bounce back from the wider declines on Tuesday.