Gold prices edged lower on Monday as an uptick in the dollar dented the metal’s appeal, although lower U.S. bond yields and prospects of a prolonged accommodative interest rate environment limited losses.

Spot gold was down 0.2% at $1,886.76 per ounce as of 0308 GMT, after rising more than 1% in the previous session, as U.S. May non-farm payrolls fell short of expectations.

U.S. gold futures eased 0.1% to $1,889.60 per ounce.

“We are seeing some long covering in Asia today, with risk hedges being unwound after an uneventful news weekend, helped by a slightly stronger U.S. dollar and with Bitcoin rallying,” said Jeffrey Halley, OANDA senior market analyst.

“Although gold has corrected in recent sessions, the bullish fundamentals remain in place. Only a sharp steepening of the U.S. yield curve is likely to change that.”

Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.

The benchmark 10-year yield slipped below 1.6% and was hovering near a one-week low.

Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.1% to 1,043.16 tonnes on Friday.

Speculators raised their net-long positions in COMEX gold in the week ended June 1.

Democrats will start the process on Wednesday of preparing an infrastructure bill for a vote in the U.S. House of Representatives, with or without Republican support, U.S. Energy Secretary Jennifer Granholm told CNN.