Gold steady as weaker Treasury yields balance improved risk appetite

[BENGALURU] Gold prices held steady in thin trade on Wednesday (Dec 29) as a boost from weaker US Treasury yields countered the impact from a slight improvement in risk sentiment.

Spot gold was little changed at US$1,804.78 per ounce by 1.23 am GMT. US gold futures dropped 0.3 per cent to US$1,805.20.

Benchmark 10-year US Treasury yields edged lower, reducing the opportunity cost of holding non-interest paying gold.

European stocks rose on Tuesday (Dec 28) while Wall Street shares closed mixed after another record-setting session in which investors shrugged off concerns over Omicron-driven travel disruptions and store closures.

Oil prices settled higher on Tuesday, with Brent crude ending the session near US$80 a barrel despite the rapid spread of the Omicron coronavirus variant, supported by supply outages and expectations that US inventories fell last week.

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

Spot silver was down 0.1 per cent at US$22.96 an ounce, platinum was 0.7 per cent lower at US$968.69, and palladium dropped 1.5 per cent to US$1,959.21.

REUTERS