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PRECIOUS-Gold rises as bleak U.S. jobs data dents dollar

Credit: REUTERS/KIM HONG-JI

Gold prices edged higher on Monday, as weaker-than-expected U.S. jobs data re-ignited concerns over a recovery in the world's largest economy, pressuring the dollar and boosting bullion's appeal.

Feb 8 (Reuters) - Gold prices edged higher on Monday, as weaker-than-expected U.S. jobs data re-ignited concerns over a recovery in the world's largest economy, pressuring the dollar and boosting bullion's appeal.

FUNDAMENTALS

* Spot gold rose 0.1% to $1,813.99 per ounce by 0040 GMT. U.S. gold futures gained 0.2% to $1,816.50.

* The dollar fell from an over two-month peak on Friday after a U.S. jobs report indicated a slow recovery from the impacts of the COVID-19 pandemic. A weaker dollar makes gold cheaper for holders of other currencies. [USD/]

* The employment report on Friday showed job losses in manufacturing and construction, two sectors which have been propping up the economy.

* U.S. President Joe Biden and his Democratic allies in Congress forged ahead with their $1.9 trillion COVID-19 relief package on Friday.

* Capping gold's gains, yields on the benchmark 10-year Treasury note soared to levels not seen in nearly a year. Higher yields increase the opportunity cost of holding non-yielding bullion. [US/]

* Breakevens on 10-year Treasury Inflation-Protected Securities , which measure average annual inflation expectations for the coming decade, have jumped to 2.19%, the highest level since mid-2018.

* Gold is considered a hedge against inflation and currency debasement, likely from widespread stimulus.

* Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to Feb. 2, data showed on Friday. [CFTC/]

* Physical gold demand picked up in China last week ahead of the Lunar New Year festival, while Indian retail buyers cheered a sharp dip in domestic rates. [GOL/AS]

* Spot silver gained 1.1% to $27.12 an ounce, platinum rose 0.7% to $1,130.91 and palladium was steady at $2,336.29.

DATA/EVENTS AHEAD (GMT) 0700 Germany Industrial Output MM Dec (Reporting by Sumita Layek in Bengaluru; Editing by Krishna Chandra Eluri) ((Sumita.Layek@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 8061822693; Reuters Messaging: Sumita.Layek.thomsonreuters.com@reuters.net)) Keywords: GLOBAL PRECIOUS/

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