Gold edges up as weaker US yields counter stronger dollar

[BENGALURU] Gold prices inched higher on Monday, staying above the key US$1,800 per-ounce level, as slightly weaker US Treasury yields offset an uptick in the dollar.

Spot gold rose 0.2 per cent to US$1,811.31 per ounce by 0145 GMT. US gold futures were little changed at US$1,812.00.

Benchmark US Treasury yields edged down from their highest in more than a week touched in the previous session.

Lower yields reduce the opportunity cost of holding bullion, which pays no interest.

The dollar index inched up from its weakest level in nearly a week against its rivals, making greenback-priced gold less attractive for holders of non-US currencies.

Japan's retail sales rose faster than expected in November as fewer Covid-19 cases encouraged shoppers to ramp up spending on goods and services.

Analysts have said gold trading is likely to remain thin and range-bound this week.

Stock markets in Europe and Asia recorded weekly gains on Friday, while the safe-haven dollar posted its worst week in three months on signs the Omicron variant would not significantly derail global economic growth.

Spot silver edged up 0.1 per cent to US$22.95 an ounce, platinum dropped 0.4 per cent to US$970.34, and palladium was up 0.3 per cent at US$1,954.35.

REUTERS