By Gina Lee
Investing.com – Gold was down on Monday morning in Asia, giving up gains made earlier in the session. The yellow metal received a boost after the U.S reported disappointing jobs data, which cast doubts on the U.S. economic recovery from COVID-19 and put pressure on the dollar.
Gold futures edged down 0.12% at $1,810.85 by 11:22 PM ET (4:2 AM GMT). The dollar also reversed its earlier losses and was up on Monday.
Friday’s U.S. jobs report for January showed that non-farm payrolls were at 49,000 and the unemployment rate was at 6.3%. The U.S. will release further data, including the federal budget and the consumer price index, later in the week.
In Congress, debate also continues for the $1.9 trillion stimulus package proposed by U.S. President Joe Biden in January. Secretary of the Treasury Janet Yellen also said on Sunday that the U.S. could return to full employment in 2022 if the country enacts a strong-enough relief package.
For physical gold, demand picked up in China during the past week ahead of the upcoming Lunar New Year holidays, while a sharp dip in domestic rates cheered Indian retail buyers.
Also giving the yellow metal a boost, yields on the benchmark 10-year Treasury note jumped to levels not seen in nearly a year. Breakevens on 10-year Treasury Inflation-Protected Securities, measuring average annual inflation expectations for the coming decade, jumped to 2.19%, the highest level since mid-2018.
Investors also await a webinar on Wednesday, where Federal Reserve Chairman Jerome Powell is due to speak.