Gold edges up on Delta virus threat, lower US Treasury bond yields

 Spot gold was up 0.1% at $1,812.83 per ounce, as of 0243 GMT, after falling 1% in the previous session

By Brijesh Patel

(Reuters) - Gold prices edged higher on Monday, lifted by a retreat in U.S. Treasury yields and concerns that a surge in coronavirus cases could dampen global economic recovery, though an uptick in the dollar limited gains for the safe-haven metal.

Spot gold was up 0.1% at $1,812.83 per ounce, as of 0243 GMT, after falling 1% in the previous session.

U.S. gold futures eased 0.1% to $1,813.70.

"Covid-driven risk aversion is driving Asian markets today after a weak finish on Wall Street on Friday," said Jeffrey Halley, a senior market analyst at OANDA.

"Some short-covering is providing modest support to gold, but it not displaying any clear momentum in either direction."

Sentiment in wider financial markets remained weak as investor risk appetite was soured by growing inflationary pressures and a relentless surge in coronavirus cases. [MKTS/GLOB]

Many countries, particularly in Asia, are struggling to curb the highly contagious Delta variant of the coronavirus and have been forced into taking lockdown measures.