(Bloomberg.) Gold rallied after a 3-week low. The spread of the Omicron Coronavirus variant was weighed against the comments made by Jerome Powell, Federal Reserve Chair on inflation control.

Scientists around the globe are trying to determine the extent of this strain that was discovered first in South Africa but later found in other countries, including the U.K. and Brazil. The strain has caused travel restrictions in order to stop its spread. There are also concerns that the strain might evade vaccine protection and lead to new outbreaks of infections. Powell reiterated his message that inflation would be controlled by the U.S. central banking and suggested that officials speed up the pace at which they withdraw support for policy.

There are “polarizing views” on gold’s future after Powell’s comments, according to StoneX analyst Rhona O’Connell, though she said investors should remember that inflation-adjusted yields are still in negative territory, which is positive for gold as it generates no interest. And Powell’s comments don’t necessarily mean interest rate hikes will come soon. There’s a lower bar to speed up tapering, compared with raising interest rates, and given the omicron variant, the U.S. central bank would want to do that anyway, O’Connell said.

More: Powell Calls for Vigilance in Inflation Control, and Advancing Policy

Bullion posted a marginal loss last month as investors weighed the prospects of the Fed dialing back on pandemic-era stimulus amid elevated consumer prices alongside uncertainty surrounding the omicron variant’s impact on the global recovery. Under a plan to slow down buying by $15 Billion per month, the U.S. central banks is scheduled to end its asset-purchase program around mid-2022. 

After falling 0.6% Tuesday, the New York Bullion Exchange was up 0.4% to $1781.31 per ounce at 4:28 PM. The Comex settled at $1,784.30 for Bullion due February delivery. It rose 0.4% The Bloomberg Dollar Spot Index was up 0.1%, reversing the previous day’s decline. While silver and platinum declined, palladium increased.

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