PRECIOUS-Gold holds near 9-month low as yields, dollar gain further

* U.S. jobs increased more than expected in February
* U.S. 10-year yield rises to 1.625%
* Gold down 2% so far this week
* Silver on track for worst week since late November

(Updates prices)
By Brijesh Patel
March 5 (Reuters) - Gold fell to its lowest in nine months
on Friday after better-than-expected U.S. employment data
bolstered the dollar and U.S. Treasury yields, putting bullion
on course for its third straight weekly decline.
Spot gold XAU= was little changed at $1,699.30 by 01:45
p.m. ET (1845 GMT), after falling to its lowest since June 8 at
$1,686.40 in the session. It has fallen nearly 2% this week.
U.S. gold futures GCv1 settled 0.1% lower at $1,698.50.
"This optimism in regards to the economy moving forward
continues to drive bond yields higher and that certainly has
been taking the wind out of the sails of many commodity markets,
including gold," said David Meger, director of metals trading at
High Ridge Futures.
Data showed U.S. jobs increased more than expected in
February, raising hopes around a quick economic rebound driven
by massive fiscal stimulus and vaccination drives. The strong economic data lifted benchmark 10-year Treasury
yields to their highest since February 2020, while the dollar
.DXY also jumped. US/ USD/
U.S. Federal Reserve Chair Jerome Powell on Thursday
repeated his pledge to keep credit loose and flowing until
Americans are back at work. His comments disappointed gold investors who expected him to
act on the recent surge in the U.S. 10-year Treasury yield,
which has sent bullion below $1,700 per ounce.
"The gold market is giving back the pandemic gains. The drop
below $1,700/oz leaves the market looking fragile," HSBC
analysts said in a note.
"Powell's comments – while not new – have extinguished for
the moment any possibility that the Fed will act on rising
yields further out the curve. Further yield gains could throw
gold and the other precious metals lower."
Silver XAG= dropped 0.4% to $25.22 an ounce and was down
more than 5% on the week, its biggest weekly percentage fall
since late November.
Palladium XPD= was up 0.3% at $2,346.19, while platinum
XPT= edged 0.1% higher to $1,127.16.