* Money falls as much as 3.6%
* Dollar hits peak over week
* Interactive graphical administration of global coronavirus distribution: tmsnrt.rs/3mvcUoa (Posting comments, updating prices)
Jan 8 (Reuters) – Gold fell 1.5%, slipping below the $ 1,900 key technical level on Friday as dollar and Treasury yields rose, ahead of U.S. nonfarm payrolls data that could further signal about economic health.
Spot loss fell 1.1% to $ 1,892.11 per ounce by 1026 GMT and is down 0.3% for the week. U.S. gold futures are peaking 1% to $ 1,894.40.
“We can only see the dollar recover from this followed by the results, which are rising as markets expect interest rates to rise on the brink of economic recovery,” said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai.
Yields on 10-year bonds hit a new high from March, helping the dollar scale at a week-high high.
Higher bond yields increase the opportunity cost of keeping bullion unproductive.
There has been some “massive sales activity from the futures market (gold)” and “it looks like someone is looking to reduce jobs ahead of U.S. non-farm payrolls,” at 1330 GMT, he said. UBS analyst Giovanni Staunovo.
Democratic ruling on the U.S. Senate has raised hopes of major stimulus measures, which are the basis of a golden bid as an inflation hedge.
But a bet on higher inflation and bond yields has also backed Federal Reserve officials’ hopes that their new monetary policy approach is catching on.
“Gold still includes the ability to recover the $ 2,000 hand. (However) there is likely to be a risk of withdrawal in Fed ‘s asset purchase program if US economic performance ends in the latter part of the year, ”said FXTM market analyst Han Tan.
“Another big product spike may lead to further de-firing from the recent gains.”
Silver fell 2% to $ 26.56 an ounce, but was on track for a straight fourth week of gain.
Palladium fell 0.3% to $ 2,413.56 an ounce, set for the worst week since early December.
Platinum fell 0.9% to $ 1,106.35 an ounce, but rose more than 3% for the week.
Reporting with Eileen Soreng and Sumita Layek in Bengaluru; Editing by Giles Elgood