Gold edged higher on Monday, recovering from an eight-month low touched in the previous session, as a weaker lifted bullion’s appeal.
Spot gold rose 0.3% to $1,739.31 per ounce by 0108 GMT, after hitting its lowest since June at $1,716.85 on Friday. U.S. gold futures gained 0.4% to $1,736.10.
The dollar slipped from a one-week high hit in the previous session, making gold cheaper for holders of other currencies.
Bullion, however, posted its worst monthly fall since November 2016 in February due to rising U.S. Treasury Yields, which increase the opportunity cost of holding non-yielding gold.
U.S. House of Representatives passed a $1.9 trillion coronavirus relief package early Saturday.
A global bond market rout saw government bond yields in the United States, Germany and Australia ending February with their biggest monthly rises in years.
The U.S. government on Saturday authorized Johnson & Johnson’s single-dose COVID-19 vaccine, setting the vaccine up for additional approvals around the world.
Speculators decreased their bullish positions in COMEX gold and silver contracts in the week to Feb. 23, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Physical gold demand in India gained momentum last week as retail buyers and jewellers lapped up bullion at near eight-month low prices, while Singapore continued to see steady interest for both gold and silver.
Silver gained 0.3% to $26.71 an ounce, while palladium was up 1% at $2,340.69. Platinum rose 1.1% to $1,202.00.
0855 Germany Markit/BME Mfg PMI
0900 EU Markit Mfg Final PMI
0930 UK Markit/CIPS Mfg PMI Final
1300 Germany CPI, HICP Prelim YY
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