The Swiss one kilo gold bar and US dollar gold coins are pictured in Paris on February 20, 2020.
JOEL ‘S WORLD AFP through Getty Images
Gold prices rose higher Monday, as weaker-than-expected U.S. jobs data ignited concerns about a recovery in the world’s largest economy, pushing the dollar and encouraging a bullion claim.
Concepts
Spot gold rose 0.1% to $ 1,813.99 per ounce before 0040 GMT. U.S. gold futures gained 0.2% to $ 1,816.50.
The dollar fell from a peak more than two months on Friday after a U.S. jobs report revealed a slow recovery from the effects of the COVID-19 pandemic. A weaker dollar makes gold cheaper for other currency holders.
The employment report on Friday showed job losses in manufacturing and construction, two sectors that have been fueling the economy.
U.S. President Joe Biden and his Democratic allies in Congress went ahead with their $ 1.9 trillion COVID-19 relief package on Friday.
Highlighting gold gains, yields on the 10-year Financial Indicator note have risen to levels not seen in nearly a year. Higher yield increases the opportunity cost of keeping bullion fruitless.
A break-even on 10-year protected securities, which measures average annual inflation expectations for the next decade, has jumped to 2.19%, the highest level since mid-2018.
Gold is thought to be a hedge against inflation and money laundering, possibly from widespread stimulus.
Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to Feb. 2, data showed Friday.
Corporate gold demand in China rose last week ahead of the Lunar New Year festival, while Indian retail buyers suggested a sharp decline in domestic rates.
Spot silver gained 1.1% to $ 27.12 an ounce, platinum rose 0.7% to $ 1,130.91 and palladium was stable at $ 2,336.29.