Gold Falls as Firmer Dollar Offsets Easing U.S. Bond Yields


Speculators raised bullish positions in COMEX gold CFTC

SPDR Gold Trust holdings rose 0.1 on Friday

U.S. 10year yields hover near 1week low Recasts, adds comments, updates prices

June 7 Reuters Gold prices edged lower on Monday as an uptick in the dollar dented the metals appeal, although lower U.S. bond yields and prospects of a prolonged accommodative interest rate environment limited losses.

Spot gold was down 0.2 at 1,886.76 per ounce as of 0308 GMT, after rising more than 1 in the previous session, as U.S. May nonfarm payrolls fell short of expectations.

U.S. gold futures eased 0.1 to 1,889.60 per ounce.

We are seeing some long covering in Asia today, with risk hedges being unwound after an uneventful news weekend, helped by a slightly stronger U.S. dollar and with Bitcoin rallying, said Jeffrey Halley, OANDA senior market analyst.

Although gold has corrected in recent sessions, the bullish fundamentals remain in place. Only a sharp steepening of the U.S. yield curve is likely to change that.

The dollar index rose 0.1 against its rivals, making gold more expensive for holders of other currencies.

Meanwhile, a weakerthanexpected U.S. monthly jobs report calmed investor fears about the tightening of monetary policy by the Federal Reserve.

Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of nonyielding bullion.

The benchmark 10year yield slipped below 1.6 and was hovering near a oneweek low.

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