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Gold Rebounds On Dollar Weakness

Gold prices rose on Monday, rebounding from a more than seven-month low hit in the previous session, as a weakening dollar eclipsed pressure from firmer Treasury yields.

Spot gold climbed 0.8 percent to $1,798.27 per ounce, after having touched its lowest since July 2 at $1,759.29 on Friday. U.S. gold futures were up as much as 1.1 percent at $1,796.30.

The dollar eased against rivals as traders sought currencies with close ties to the global commodities trade due to an improving economic outlook.

The pound hit a new three-year high of $1.4050 in early London trading as the British government's vaccine drive continued to progress.

U.K. Prime Minister Boris Johnson is to table a "cautious" roadmap in Parliament later today to ease the country out of the strict stay-at-home lockdown in place to control the spread of coronavirus infections.

Meanwhile, benchmark U.S. Treasury yields hit a near one-year high, increasing the opportunity cost of holding non-yielding bullion.

On the stimulus front, U.S. Democrats are fast-tracking the Covid-19 relief bill with the U.S. House of Representatives expected to vote on Biden's proposed package by the end of the week.

In testimony before the Senate Banking Committee on Tuesday and the House Financial Services panel the following day, Federal Reserve Chairman Jerome Powell will probably play down the risk of inflation.

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