Spot gold rose 0.1% to $1,812.83 an ounce as of 0243 GMT, after losing 1% in the previous session.

Gold prices edged higher on Monday, fueled by a rebound in US Treasury yields and concerns that a surge in coronavirus cases could dampen the global economic recovery, though a bullish dollar limited gains for the safe-haven metal.

Spot gold rose 0.1% to $1,812.83 an ounce as of 0243 GMT, after losing 1% in the previous session.

US gold futures ended 0.1% lower at $1,813.70.

“Asian markets are rallying today on risk aversion from COVID-19 following a weak closing on Wall Street on Friday,” said Jeffrey Haley, a senior market analyst at OANDA.

“Some short-covering is providing minor support to gold, but it is not showing any clear movement in either direction.”

Sentiment remained weak in the broader financial markets as rising inflationary pressures and a sustained rise in coronavirus cases dented investors’ risk appetite. [एमकेटीएस/ग्लोब]

Many countries, especially in Asia, are struggling to curb the highly contagious delta version of the coronavirus and have been forced to impose lockdown measures.

Gold is used as a safe investment in times of political and financial uncertainty.

Benchmark 10-year Treasury yields fell to near two-week lows, reducing the opportunity cost of holding non-interest-bearing gold.

However, safe haven gains limited gold’s appeal to the US dollar, as the dollar index strengthened 0.1% against its rivals at a three-month high. [USD/]

“Negative real yields are driving gold prices against a stronger USD. We expect the US dollar to weaken as other central banks raise rates,” ANZ analysts said in a note.

“Inflows into gold and silver-backed ETFs are steady as talk of fiscal tightening mounts. Speculation in both gold and silver leaves room for price rise.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.6% to 1,028.55 tonnes on Friday, the lowest since May 14. [GOL/ETF]

Elsewhere, silver was down 0.6% at $25.50 an ounce, palladium was up 0.2% at $2,635.65 and platinum was down 0.2% at $1,100.55.

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