Dec 29 (Reuters) - Gold prices held steady in thin trade on Wednesday as a boost from weaker U.S. Treasury yields countered the impact from a slight improvement in risk sentiment. FUNDAMENTALS * Spot gold was little changed at $1,804.78 per ounce by 0123 GMT. U.S. gold futures dropped 0.3% to $1,805.20. * Benchmark 10-year U.S. Treasury yields edged lower, reducing the opportunity cost of holding non-interest paying gold. * European stocks rose on Tuesday while Wall Street shares closed mixed after another record-setting session in which investors shrugged off concerns over Omicron-driven travel disruptions and store closures. * Oil prices settled higher on Tuesday, with Brent crude ending the session near $80 a barrel despite the rapid spread of the Omicron coronavirus variant, supported by supply outages and expectations that U.S. inventories fell last week. * Analysts have said gold trading is likely to remain thin and range-bound this week. * Spot silver was down 0.1% at $22.96 an ounce, platinum was 0.7% lower at $968.69, and palladium dropped 1.5% to $1,959.21.