Gold flat as U.S yields, dollar remain steady

Gold held steady on Tuesday at near one-week high hit in the previous session as the U.S. dollar and Treasury yields, key influences on bullion prices, were largely flat.

Higher yields increase the opportunity cost of holding bullion, which pays no interest, while a weaker dollar makes greenback-priced gold less expensive for holders of non-U.S. currencies.

Global stock markets rose on Monday and oil prices eased as investors hailed strong U.S. holiday season sales and some grew less fearful about economic damage from the Omicron variant of COVID-19.

Japan’s jobless rate rose to 2.8% in November, while the availability of jobs matched that of the previous month, government data showed on Tuesday.

China will keep its monetary policy flexible next year as it seeks to stabilize growth and lower financing costs for businesses amid growing economic headwinds, the central bank said on Monday.

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