08.02.202109:08:00UTC+00Gold Subdued On Higher Treasury Yields

Gold prices were flat to slightly lower on Monday as the dollar steadied and U.S. Treasury yields moved higher amid the prospect of new fiscal stimulus.

Spot gold slid 0.1 percent to $1,812.84 per ounce while U.S. gold futures were little changed at $1,812.10.

Yields on the longest-dated U.S. benchmark bond have topped 2 percent for the first time in close to a year amid rising expectations for inflation.

"The U.S. does have fiscal space to take additional relief and support measures," IMF chief Kristalina Georgieva said on Friday as Democrats moved forward with a $1.9 trillion relief plan by approving a budget outline for the proposal.

President Joe Biden says he could deliver the aid package in the coming weeks without Republican support.

U.S. Treasury Secretary Janet Yellen predicted the relief plan could generate enough growth to restore full employment by next year.

House Speaker Nancy Pelosi said she believes the final Covid-19 relief legislation could pass Congress before March 15, when special unemployment benefits that were added during the pandemic expire.

Concerns over a recovery in the U.S. economy after a weaker-than-expected jobs report limited bullion's losses.

"There's simply nothing more important than getting the resources we need to vaccinate people as soon and as quickly as possible," Biden said shortly after the jobs report was released.