2018.01.1001:42:00UTC+00Gold Prices Slid on Higher U.S. Treasury Yields

Gold prices fell on Wednesday as a jump in U.S. treasury yields and a rally in equities reduced the yellow metal's safe-haven appeal.

Spot gold dropped 0.1 percent to $1,311.56 per ounce. It fell 0.6 percent on Tuesday, in its largest one-day decline in a month.

U.S. gold futures were 0.1 percent lower at $1,312.50 per ounce.

Benchmark U.S. Treasury yields reached a 10-month high on Tuesday after the Bank of Japan tweaked its bond-purchasing programme.

The dollar index, which tracks the greenback against a basket of six major currencies, fell 0.1 percent to 92.423. It hit a more than one-week peak at 92.640 on Tuesday.

Holdings of SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, dropped 0.35 percent to 831.91 tonnes on Tuesday from Monday, the largest decline since Dec. 18, 2017.

Among other precious metals, palladium was down 0.4 percent at $1,096 per ounce, after reaching its life-time peak on Tuesday at $1,111.40. Silver fell 0.1 percent to $16.93 per ounce. Platinum lost 0.7 percent at $958.70.