Gold prices edged higher on Monday, to head for the second daily gain, after the US T-bond yields pulled back from a 1-month high.

Gold prices rose 0.4% to $1,734.09 an ounce, after opening at $1,727.77, and hit a low of $1,721.66.

Gold closed higher by 0.3% on Friday, in its third daily gain in 4 days, thanks to bargain hunting.

The yellow metal gained 1.5% last week, and posted the first weekly gain in a month, within recovery attempts from the 9-month low of $1,676.77 an ounce.

10-year US treasury yields fell 1.3% today after hitting earlier a 13-month highs at 1.646%. 

The Federal Reserve will start its two-day meeting tomorrow, to discuss the latest developments of the US economy.

The US bond market is also awaiting the results of this meeting, as if the Fed showed any signs on a near interest rates hikes, the US bond yields will surge, which weighs down on the prices of gold and silver.

Gold stocks at the SPDR ETF fell 3.2 metric tonnes yesterday, with the total at the lowest level since April 24, 2020 at 1,052.07 metric tonnes.

The US dollar rose on Monday, and extended its gains for the second straight day, after the US Treasury bond yields jumped to a 13-month high, ahead of the Fed monthly meeting.

The dollar index rose 0.25% to 91.87 points, after opening at 91.66 points, and hit an intraday low of 91.54 points.

The index gained 0.3% on Friday, the first daily gain in 4, after US bond yields rebounded.

The dollar index lost 0.3% last week, in its first weekly loss out of 3 weeks, due to profit-taking from its 4-month high of 92.50 points.

10-year US treasury yields rose over 1.1% today for the third straight session, marking 13-month highs at 1.646%. 

The Federal Reserve will start its two-day meeting tomorrow, to discuss the latest developments of the US economy.

The US bond market is also awaiting the results of this meeting, as if the Fed showed any signs on a near interest rates hikes, the US bond yields will surge, which weighs down on the prices of gold and silver.

Silver prices rose on Monday, to head for the first daily loss in 3 days, based on hopes of a rebound in China's actual demand after data showed signs on Chinese economic recovery during the first quarter of this year.

Silver prices rose more than 0.9% to $26.20 an ounce, after opening at $25.96, and hit a low of $25.79.

Silver closed lower by 0.8% on Friday, in its second straight daily loss, due to rising US Treasury yields.

Silver prices rose 2.6%, and posted the first weekly gain in a month, thanks to support around $25 an ounce.

China's industrial production grew more than expected during January and February, which raised expectations of increased demand for metals.

The Federal Reserve will start its two-day meeting tomorrow, to discuss the latest developments of the US economy, especially after President Joe Biden signed the $1.9 trillion Covid relief package.

The US bond market is also awaiting the results of this meeting, as if the Fed showed any signs on a near interest rates hikes, the US bond yields will surge, which weighs down on the prices of gold and silver.

European stocks rose in early trading on Monday, and hit a 13-month high, thanks to improved market sentiment following record gains in Wall Street, and shrugged off the rising US Treasury bond yields.

The Stoxx Europe 600 index rose 0.5% as of 11:35 GMT, and hit the highest since February 2020 at 426.1 points, after closing lower by 0.3% on Friday in the first daily loss in 5 days.

The pan European index gained 3.5% last week, the second straight weekly gain, and the largest weekly gain since November, thanks to hopes of a fast economic recovery in Europe this year.

The travel and leisure sector saw the largest gains in Europe today, with a jump of more than 2.5%, following the latest positive news about the ongoing Covid-19 vaccination campaigns in Europe.

Dow Jones futures rose more than 0.25%, and hit the all-time high ahead of Wall Street opening, after the index closed up 0.9% on Friday, in the sixth straight daily gain, and hit a record high of 32,793.3 points.

These record gains for US stocks came despite the yield of the US 10-year Treasury bonds jump to a 13-month high, thanks to hopes over the US economy recovery from the pandemic impact, especially after President Joe Biden signed the $1.9 trillion Covid relief bill.

Back to Europe, the Euro Stoxx 50 index rose 0.25%, France's CAC 40 rose 0.3%, and Germany DAX index rose 0.1%, while the UK's FTSE 100 fell 0.1%.