Oct 20 (Reuters) - Gold prices edged lower on Wednesday as surging U.S. bond yields dented the metal’s appeal and bets for upbeat corporate earnings lifted risk-on sentiment. FUNDAMENTALS * Spot gold dropped 0.1% to $1,767.71 per ounce by 0100 GMT. The metal rose as much as 1.2% on Tuesday before giving up most of those gains as Treasury yields rallied. U.S. gold futures fell 0.1% to $1,768.40. * U.S. benchmark 10-year Treasury yields surged to their highest since May 20, raising the opportunity cost of holding non-yielding bullion. * Further dimming the metal’s safe-haven appeal were expectations for solid quarterly earnings, which provided a boost to U.S. equities on Tuesday. * The Federal Reserve will wait until 2023 before raising interest rates, according to a majority of economists in a Reuters poll, though persistent inflation would likely be the greater risk for the U.S. economy over the coming year. * Market expectations for future interest rates do not square with the European Central Bank’s guidance for no hike until inflation is seen stably at 2%, its chief economist said. * If inflation keeps rising at its current pace in coming months rather than subsiding as expected, Fed policymakers may need to adopt “a more aggressive policy response” next year, Fed Governor Christopher Waller said. * Fed Governor Michelle Bowman also said inflation may last longer than expected just a few months ago. * Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up. * Spot silver fell 0.1% to $23.62 an ounce, while platinum dropped 0.4% to $1,035.96 and palladium eased 0.5% to $2,087.90. DATA/EVENTS (GMT) 0600 UK CPI YY Sept 1800 U.S. Federal Reserve issues the Beige Book of economic condition (Reporting by Nakul Iyer in Bengaluru; Editing by Subhranshu Sahu)