* Oil prices dip to multi-month lows
* Treasury's Yellen: Fed's job to avoid 'wage-price spiral'
Dec 2 (Reuters) - Gold dropped over 1% to a one-month low on
Thursday, as investors latched on to signs of a seemingly
hawkish tilt in U.S. monetary policy that could rein in rising
consumer prices in future.
Spot gold was down 1.1% at $1,764.00 per ounce by
01:57 p.m. ET (1857 GMT), after hitting its lowest since Nov. 3.
U.S. gold futures settled down 1.2% at $1,762.70.
"The Fed policy shift and the suggestion that inflation
fears are going to be lessening has taken the wind out of the
(gold) bull sail," said Jim Wyckoff, senior analyst at Kitco
Metals, pointing to a retreat in crude oil prices that may
suggest ebbing inflation pressures as well.
Gold seemed to take cues from increased bets that early
interest rate hikes translating into higher opportunity cost
of holding non-yielding gold would curb future inflation,
flattening the yield curve.
While the gain in stock markets may suggest improved
appetite for risk, further volatility in equities, especially
amid lingering uncertainty over the Omicron coronavirus variant,
may put a floor under prices of safe-haven gold, Wyckoff added.
Although Wall Street rebounded boosted by financials shares,
rising cases of the virus variant globally continued to drive
volatility across markets.
The prospect of a faster taper could cap the upside for
bullion and boost the U.S. dollar and Treasury yields, in a
further dent to gold's appeal, said Michael Hewson, chief market
analyst at CMC Markets UK.
Adding to the rhetoric, U.S. Treasury Secretary Janet Yellen
told the Reuters Next conference it was the Fed's job to ensure
that the current run of high inflation does not evolve into a
damaging and long-lasting "wage-price spiral" like in the 1970s.
Spot silver steadied at $22.31 per ounce, platinum
gained 0.3% to $936.00 and palladium added 1.8% to
(Reporting by Asha Sistla and Arundhati Sarkar in Bengaluru;
Editing by Shailesh Kuber and Krishna Chandra Eluri)