Metals Stocks: Gold edges higher after snapping 3-week skid

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Gold futures edged higher Monday, looking to build on last week’s rise as investors continue to monitor bond yields and the U.S. dollar.

Gold for April delivery GCJ21, +0.60% was up $10.60, or 0.6%, at $1,730.40 an ounce on Comex. May silver futures SIK21, +1.21% were up 28.9 cents, or 1.1%, at $26.19 an ounce.

“Hammered by [U.S. dollar] strength and the backup in rates, gold’s multi-month downtrend is forming a base that recently embraced the support at $1,680, paving the way for the ongoing uptrend,” said Stephen Innes, chief global markets strategist at Axi, in a note.

Gold ended lower Friday but posted a weekly rise of 1.3%, while silver was up 2.5% for the week. Both metals snapped a three-week skid of falling prices that came as Treasury yields marched higher due, in part, to rising inflation fears stoked by expectations for an accelerated economic recovery. Higher bond yields raise the opportunity cost of holding nonyielding assets like gold.

The yield on the 10-year Treasury note TMUBMUSD10Y, 1.620% was off 0.3 basis point at 1.624%. Yields and bond prices move in opposite directions.