Gold flat on firmer dollar, U.S. bond yields

Gold flat on firmer dollar, U.S. bond yields

Gold prices were flat on Tuesday, as a firmer dollar and U.S. Treasury yields weighed on its appeal and confined the metal to a tight $4 range. FUNDAMENTALS * Spot gold was little changed at $1,778.79 per ounce by 0130 GMT. U.S. gold futures were flat at $1,780.00. * The dollar index steadied, hanging on to an overnight jump made with U.S. yields as investors hoped early signs the Omicron variant may be mild will be proved correct. * A stronger dollar raises gold's costs to buyers holding other currencies, while higher yields increase bullion's opportunity cost. * Bank of England Deputy Governor Ben Broadbent said on Monday that inflation in Britain might "comfortably exceed" 5% in April and that the country's tight labour market risked becoming a more persistent source of inflation. * Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of non-interest bearing gold. * Financial markets, which have struggled this year to decipher central bankers' policy signals, face their biggest challenge yet in December when in the space of 24 hours the Federal Reserve, ECB and Bank of England hold crucial meetings. * Euro zone finance ministers remained