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PRECIOUS-Gold prices edge higher on softer dollar

Published 01/03/2021, 12:35 pm
Updated 01/03/2021, 12:36 pm
© Reuters.
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March 1 (Reuters) - Gold edged higher on Monday, recovering from an eight-month low touched in the previous session, as a weaker dollar lifted bullion's appeal.

FUNDAMENTALS

* Spot gold XAU= 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 GCv1 gained 0.4% to $1,736.10.

* The dollar .DXY slipped from a one-week high hit in the previous session, making gold cheaper for holders of other currencies. USD/

* 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. US/

* 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 (NYSE:JNJ)'s JNJ.N 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. GOL/AS

* Silver XAG= gained 0.3% to $26.71 an ounce, while palladium XPD= was up 1% at $2,340.69. Platinum XPT= rose 1.1% to $1,202.00.

DATA/EVENTS (GMT) 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 1445 US

Markit Mfg PMI Final 1500 US

ISM Manufacturing PMI

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