Is The Omicron Variant Setting Up For A Repeat of 2020 For Gold Prices – What’s Next?

Gold prices exploded higher after Fed chair Jay Powell signalled that the Omicron variant of the coronavirus could slow the U.S economic recovery and prolong global supply chain disruptions that are fuelling unstoppable inflation.

The remarks by the Fed chief are his first on the state of the economy since the World Health Organization dubbed a new strain of the coronavirus as “a variant of concern”.

Even before Powell spoke, the precious metal ticked higher amid comments from Moderna CEO Stephane Bancel.

Bancel raised alarm bells as he declared that existing vaccines would be much less effective at tackling Omicron than earlier strains of coronavirus. He also warned it would take months for pharmaceutical companies to manufacture new variant-specific vaccines at scale.

Gold’s price action over the past week is beginning to resemble the identical trend seen during the first wave of the pandemic in April 2020.

What comes next will be dictated by what scientists discover about the new COVID-19 variant, including how resistant it is to vaccines and how more transmissible it is than the delta variant.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

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