Spot gold was up 0.6% at $1,854 per ounce by 0649 GMT, after hitting its highest since Feb. 2 earlier in the session. US gold futures jumped 0.8% to $1,853.20.

“Treasury yields are falling and on the other hand, there seems to be fears about virus resurgence in Singapore, Taiwan and broader Asian-Pacific markets... driving up demand for safety,” said Margaret Yang, a strategist at DailyFX.

Investors now await minutes of the US Federal Reserve’s last meeting due on Wednesday for more cues on the central bank’s monetary policy and any comments on rising inflation.

“Inflation is going to be a strong driver behind gold in the short- and medium-term. There are always concerns about Fed tapering, but the latest non-farm payrolls report is helping to contain that fear,” Yang said.

Gold is seen as a hedge against rising inflation.

Spot gold may rise to $1,876 per ounce, as it has broken a resistance at $1,847, according to Reuters technical analyst Wang Tao.—Reuters