Gold prices edge higher on softer dollar

Spot gold rose 0.3% to $1,739.31 per ounce by 0108 GMT

  
A sales assistant displays a 1000 gram gold bar as an investment for a customer at Caibai Jewelry store, in Beijing, China, August 6, 2019.

A sales assistant displays a 1000 gram gold bar as an investment for a customer at Caibai Jewelry store, in Beijing, China, August 6, 2019.

REUTERS/Jason Lee

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 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 .DXY 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.

 (Reporting by Shreyansi Singh in Bengaluru; Editing by Rashmi Aich) ((Shreyansi.Singh@thomsonreuters.com; +91 8061823666/3590 (If within U.S. call +1 646 223 8780); Reuters Messaging: Shreyansi.Singh@thomsonreuters.com))

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