Gold Price Forecast: XAU/USD retreats towards $1,800 as Omicron weighs on sentiment

As the new week started, the analysis of Gold has changed.

• Gold begins the week on a back foot, stays near the monthly high.

• Omicron woes weigh on holiday season, 4,500 flights canceled globally.

• US VP Harris sounds hopeful over BBB passage, US retail sales jump 8.5% during holiday season.

• Gold 2022 Outlook: Correlation with US T-bond yields to drive yellow metal

Gold (XAU/USD) strive to maintain the $1,800 threshold amid a sluggish Asian session on Monday. The yellow metal witnessed a lackluster session the previous day amid an offer in multiple global markets. However, the recent escalation in the virus fears, coupled with the geopolitical headlines, challenge gold buyers of late.

While the coronavirus cases jumped in the West and recalled major activity restrictions despite the holiday season, fears of the faster spread of the COVID-19 variant linked to South Africa, dubbed as Omicron, add to the market fears and weigh on gold prices. The average number of new US coronavirus cases has risen 45% to 179,000 per day over the past week, per Reuters tally whereas the UK and France reported a fresh high of Covid-19 daily infections, respectively crossing 122,000 and 94,000 daily cases at the latest.

The smuggle in the covid cases also brings the travel restrictions and limited activity during an otherwise heavy-spending time of the year. “Commercial airlines around the world canceled more than 4,500 flights over the Christmas weekend, as a mounting wave of COVID-19 infections driven by the Omicron variant created greater uncertainty and misery for holiday travelers,” mentioned Reuters.