Gold Edges Up As Weaker U.S. Yields Counter Stronger Dollar – Reuters

Dec 27 (Reuters) – Gold prices inched higher on Monday, staying above the key $1,800 per-ounce level, as slightly weaker U.S. Treasury yields offset an uptick in the dollar.

FUNDAMENTALS

* Spot gold rose 0.2% to $1,811.31 per ounce by 0145 GMT. U.S. gold futures were little changed at $1,812.00.

* Benchmark U.S. 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 (.DXY) inched up from its weakest level in nearly a week against its rivals, making greenback-priced gold less attractive for holders of non-U.S. 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. read more

* 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% to $22.95 an ounce, platinum dropped 0.4% to $970.34, and palladium was up 0.3% at $1,954.35.

Reporting by Bharat Govind Gautam in Bengaluru; Editing by Richard Chang

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