NEW YORK: Gold rose on Monday, yet gains were limited by a stronger dollar and yields, with investors banking on the precious metal’s safe-haven appeal as concerns about an economic slowdown linger.
Spot gold rose 0.3% to $1,871.25 per ounce by 10:05 a.m. ET (1505 GMT), after hitting its lowest since Jan. 6. US gold futures gained 0.5% to $1,886.20.
“Traders will look at gold as a safe-haven asset and buy into it,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
Concerns over a slowdown remain and that is likely to keep demand for gold on a firm footing this year, analysts said. Weighing on gold, the dollar index advanced 0.6% to an almost month-high, making the yellow metal more expensive for buyers holding other currencies, with benchmark Treasury yields rising as well.
Gold prices dropped more than 2% on Friday after data showed US job growth accelerated sharply last month, with focus on speeches by a host of Fed officials this week, including Chairman Jerome Powell.
The Fed last week increased interest rates by a quarter of a percentage point to 4.5%-4.75% after a year of larger hikes, and investors are now pricing in the policy rate peaking at 5.05% in June.
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