Gold set for worst performance in six years, steadies above $1,800

Gold was on course to record its worst performance in six years, though prices steadied above the key $1,800 per ounce level in thin trade on Thursday as a weak dollar countered pressure from firm Treasury yields.

Spot gold XAU= was down 0.1% at $1,801.40 per ounce by 0353 GMT. U.S. gold futures GCv1 fell 0.2% to $1,802.30.

Gold prices hit a one-month high on Tuesday but slipped to a one-week low the very next session before closing unchanged, and were on track for their biggest annual percentage decline since 2015. GOL/

The first week of January will provide directional clues because gold is seen caught between how fast and in what direction inflation is going and what, and how much, the U.S. Federal Reserve is doing to contain it, Spivak said.

Benchmark 10-year U.S. Treasury yields firmed near a one-month peak, raising the opportunity cost of holding non-interest paying gold. US/

However, buoying the metal’s appeal, the dollar index .DXY steadied near a one-month low as investors looked beyond a surge in Omicron variant cases and favoured riskier currencies. USD/

Spot silver XAG= dipped 0.5% to $22.70 an ounce, platinum XPT= eased 0.3% to $964.96, and palladium XPD= fell 0.5% to $1,973.75. All set for their worst showing in several years.