Gold Rakes In Loss After Slide on Friday

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Gold went up on Monday, clawing back most of its losses after posting the largest one-day loss it’s had in over two months in the previous session as a softer tone to the dollar took some pressure off the metal.

Spot gold was up 0.51 percent at $1,339.70 an ounce at 3:15 p.m. EST, but well below the 17-month high of $1,366.07 late in January. U.S. gold futures went up 0.43 percent at $1,343.10 for April delivery.

Gold dropped 1.2 percent on Friday because the stronger than expected U.S. payrolls data soared over expectations that a pick-up in inflation will triggered further U.S. interest rate hikes for this year, which boosted the U.S. currency, in which it is priced.

After Railing in the wake of the data, the dollar increased 0.3 percent against the Euro on Monday.

Stock markets were routed globally on Monday and bond yields went up as resurgent U.S. inflation promoted the possibility that central banks would tighten policy more aggressively than previously expected.

Rising interest rates weigh on gold in their own right, as well as their impact on the currency markets, as they increase the opportunity cost of holding non-yielding bullion.

Spot silver rose 0.95 percent at $16.772 an ounce, having matched the previous session’s five-week low of $16.54 earlier on.

The metal decreased 3.7 percent on Friday in what seems to be its biggest one-day decline since Dec. 2016.

Platinum went up 0.55 percent at $991.80 an ounce. Palladium on the other hand went down 1.6 percent at $1,030.22 an ounce.

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