Gold inched higher in choppy trade on Monday, as weakness in Treasury yields kept prices above the $1 800-mark and marginally outweighed pressure stemming from elevated US dollar levels.
Spot gold was up 0.1% at $1 811.99 per ounce, by 0319 GMT. US gold futures rose 0.6% to $1 812.10.
Bullion prices hit a five-month low of $1 783.50 on Friday, but recovered to end the session nearly steady.
“Once again, we saw buyers support gold with its break below $1 800 on Friday, and with US yields continuing to retrace, it allows the potential for gold to rise over the near term,” City Index senior market analyst Matt Simpson said.
Benchmark US 10-year Treasury yields fell to their lowest level in a month on Friday, buoying non-yielding bullion.
“But the reality is that managed funds and large speculators are increasing their short bets against gold, and if we see a close below $1 800 then it could trigger another bout of selling,” Simpson said.
The dollar hovered close to recent two-decade highs, continuing to make greenback-priced gold less attractive for buyers holding other currencies, after playing a significant part in bullion’s worst quarterly showing in over a year.
Asian equities started cautiously on Monday as a run of soft US data suggested downside risks for this week’s June payrolls report, while the hubbub over recession was still driving a relief rally in government bonds.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.8% to 1 041.9 tonnes on Friday from 1 050.31 tonnes on Thursday.
US Federal government offices, stock and bond markets, and the Federal Reserve will be closed on Monday for the Independence Day holiday.
Spot silver eased 0.2% to $19.84 per ounce, platinum fell 0.5% to $884.49, and palladium dropped 1.3% to $1 934.40.