As we learn more about COVID-19 and the Coronavirus continues to develop new variants, the world is left wondering if there will be another 2020-style shutdown. The economy was stopped at a halt, and getting it restarted again has been a now years-long process that has led to continued financial uncertainty and a complete shakeup of the job market. If you are curious about Omicron and the price of gold, as well as how to protect your investments during vulnerable financial times, keep reading to learn more.

What Determines the Price of Gold?

Many factors determine the price of gold. These include:

• Supply. New gold is always being mined, and all of the gold that has already been mined is still in existence. When gold is purchased, it is seen as a valuable possession and kept away. Most people lock their gold away in drawers or safety deposit boxes which takes it off the market and causes the supply to go down.
• Demand. According to Investopedia, investors have long been enamored by gold, and the price of the metal has increased substantially over the past 50 years. Like most commodities, supply and demand are incredibly important, but gold also retains additional value. Government vaults and central banks comprise one important source of demand for the metal. Investment demand, especially from large ETFs, is another factor underlying the price of gold.
• Inflation. Gold is a hedge against inflation, so when inflation rises, so does the value of gold. When the dollar is weak, gold becomes stronger. Currently, inflation is very high and, therefore, driving the price of gold up.
  Economic uncertainty. When there is economic uncertainty, such as the 2020 Coronavirus pandemic, the price of gold soars. People want to protect their savings and retirement accounts for the future, as well as ensure their safety during uncertain times.

How Does Omicron Affect the Price of Gold?

Omicron is the newest variant of the Coronavirus. According to the CDC, some essential facts about the Omicron variant include:

• The Omicron variant likely will spread more easily than the original SARS-CoV-2 virus and how easily Omicron spreads compared to Delta remains unknown. CDC expects that anyone with Omicron infection can spread the virus to others, even if they are vaccinated or don’t have symptoms.
• Current vaccines are expected to protect against severe illness, hospitalizations, and deaths due to infection with the Omicron variant. However, breakthrough infections in people who are fully vaccinated are likely to occur.
• With other variants, like Delta, vaccines have remained effective at preventing severe illness, hospitalizations, and death. The recent emergence of Omicron further emphasizes the importance of vaccination and boosters.

Some critical takeaways of these facts include that it can spread more quickly than the original virus and can still cause breakthrough cases to individuals who are vaccinated and boosted. This can cause uncertainty for how cases and deaths related to the Coronavirus will rise, which may cause another economic event similar to 2020. All of this leads to the value of gold increasing as the demand becomes higher.

What to Expect

According to CNBC, Omicron-led worries pushed gold prices to a peak since Nov. 26. Global equities retreated on concerns over the impact of tighter COVID-19 curbs, but safe-haven inflows into gold seemed to have stalled. Gold also found little support from a lower dollar.

Although bullion is considered a hedge against higher inflation and uncertainties, rate hikes would increase the opportunity cost of holding non-yielding gold.

But Omicron-led uncertainty could lead to a more dovish central bank narrative in 2022, helping gold, analysts said. Worries about the economic impact of COVID-19 curbs seemed to have seeped into the other metals, which tend to follow wider market cures more closely.

Palladium dropped 2% to $1,746.85 per ounce, while platinum rose 0.1% to $930.50 per ounce. Silver shed 0.3% to $22.28 as of December, 2021.

About Priority Gold

As we have experienced in our lifetime, economic uncertainty can happen at any time. New variants of the Coronavirus are making headlines every few months, and there is no knowing how catastrophic they will be. Protecting your savings, retirement, and your family’s future with gold is more important now than ever.

If you are ready to invest in gold to protect your savings and secure your future, we can help. Priority Gold is one of the most trusted precious metals dealers in the United States with BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.

Whether you are a first-time investor or seasoned with an extensive portfolio, we can help you reach your financial goals. We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their important financial objectives.

We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. Priority Gold guarantees the highest customer service standards, which come with honesty, professional conduct, and the Ethical Code of Business.

For more information, visit us at prioritygold.com