PRECIOUS-Gold off 6-week low, but stronger dollar, yields weigh

  • Reuters
  • Commodities News
PRECIOUS-Gold off 6-week low, but stronger dollar, yields weigh
Credit: © Reuters.

* Silver dips as much as 4.2%

* Fed's Clarida sees 'impressive' year ahead for U.S. economy

* Interactive graphic tracking global spread of coronavirus: (Adds analyst comment, details; updates prices)

By Sumita Layek

Jan 11 (Reuters) - Gold prices reversed course on Monday from a near six-week low touched earlier in the session, although a stronger dollar and higher U.S. Treasury yields capped bullion's gains.

Spot gold XAU= was up 0.3% at $1,853.96 by 0817 GMT, recovering from a six-week low of $1,816.53 per ounce hit during the session, while U.S. gold futures GCv1 gained 0.8% to $1,850.30. Prices had dropped 4.4% on Friday.

"The market just probably overshot this morning and we're seeing a little bit of investor interest coming back to the fray, especially because we got above the $1,840 level," said Stephen Innes, chief global market strategist at Axi.

But, higher U.S. yields and stronger dollar continue to pressure gold, he added.

The U.S. 10-year Treasury yield US10YT=RR held firm above 1%, helping the dollar .DXY scale a near three-week peak against rival currencies. US/ USD/

Investors also took note of Federal Reserve Vice Chair Richard Clarida's comments on Friday that the U.S. economy was headed for an "impressive" year, helped by coronavirus vaccines and potential for larger government spending. President-elect Joe Biden on Friday hinted at more direct pandemic relief to families after data showed the economy shed jobs for the first time in eight months in December. stability in the United States is weighing on gold prices, while expectations of more stimulus and faster economic recovery are helping the dollar rebound, said Jigar Trivedi, commodities analyst at Mumbai-based broker Anand Rathi Shares.

But gold will be bought at dips as the pandemic remains largely out of control and interest rates are still very low, Trivedi added.

Silver XAG= fell 0.8% to $25.18 an ounce, after dropping as much as 4.2% earlier in the session.

Platinum XPT= fell 1.2% to $1,051.94, while palladium XPD= dipped 0.1% to $2,368.95.

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