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 XAU= rose 0.1% to $1,813.99 per ounce by 0040
GMT. U.S. gold futures GCv1 gained 0.2% to $1,816.50.
* The dollar .DXY 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 US10YTIP=RR , 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 XAG= gained 1.1% to $27.12 an ounce,
platinum XPT= rose 0.7% to $1,130.91 and palladium XPD= was
steady at $2,336.29.
DATA/EVENTS AHEAD (GMT)
0700 Germany Industrial Output MM Dec