Gold Up Over Weaker Dollar, But Gains Capped by Higher Yields By

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© Reuters.

© Reuters.

By Gina Lee – Gold was up on Monday morning in Asia, edging up from the over seven-month low seen during the previous session. A weaker gave gold a boost, although gains were capped by higher U.S. Treasury yields.

were up 0.26% at $1,782 by 11:53 PM ET (4:53 AM GMT). The dollar was down on Monday, while benchmark U.S. Treasury yields climbed to a near one-year peak.

Demand for physical gold climbed in India during the past week as local prices hit their lowest levels since June 2020. Other Asian centers also expect a pickup in purchases after the Lunar New Year holiday.

Meanwhile, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday that hedge funds and money managers retreated from their bullish positions in COMEX gold and raised them in silver contracts in the week to Feb. 16.

The $1.9 trillion COVID-19 proposed by U.S. President Joe Biden also continued to advance, after the House of Representatives on Friday released the legislation that lawmakers target to pass within the week.

On the central bank front, Federal Reserve Chairman Jerome Powell will deliver the Fed’s semi-annual monetary policy report to the Senate Banking Committee on Tuesday. Investors will be watching for any signs of concerns over higher long-term borrowing costs on Powell’s part.

The Fed warned on Friday that the risks of ongoing business failures in the U.S. “remain considerable” even as the economy emerges from COVID-19.

Silver gained 1.3%, platinum rose 1.7% and palladium jumped 1.6%.