Gold futures gained ground Monday, shaking off a stronger dollar and a rise in Treasury yields to extend a bounce after hitting a two-month low last week.
Gold for April delivery rose $13.40, or 0.7%, to $1,826.40 an ounce on Comex. March silver was up 25.1 cents, or 0.9%, at $27.27 an ounce.
The yellow metal bounced on Friday, trimming a weekly loss after a weaker-than-expected jobs report halted a dollar rally. The weak jobs report was seen adding to momentum for President Joe Biden’s proposed $1.9 trillion package of coronavirus aid spending.
A stronger dollar can be a negative for commodities priced in the currency, making them less expensive to users of other currencies. The ICE U.S. Dollar Index, a measure of the currency against a basket of six major rivals, was up 0.2%.
While Biden is considered unlikely to get the entire package through Congress, a weak January jobs report on Friday was seen as building momentum for a large round of spending. Meanwhile, the push for additional spending has sparked a debate over the potential for the measures to overheat the economy and spark inflation.
But with investors piling into stocks and other assets traditionally viewed as risky, a haven asset like gold has limited upside potential, wrote analysts at Commerzbank, in a Monday note.