 "Gold rises on hopes of low interest rates post bleak US jobs data")
Gold prices rose on Monday, hovering near a three-month peak, as a shocking miss in US jobs numbers last week cemented expectations that interest rates will remain low for some time, denting the dollar and boosting non-yielding metal's appeal.
Spot gold was up 0.3 per cent at $1,835.44 per ounce by 0845 GMT, after hitting its highest since Feb. 11 at $1,842.91 on Friday. US gold futures gained 0.3 per cent to $1,836.40.
"We are seeing a carry over this morning from Friday's non-farm payrolls figures which were surprisingly disappointing. Clearly both the US dollar and yields remain on the back foot, supporting gold," said independent analyst Ross Norman.
US nonfarm payrolls data on Friday showed jobs growth unexpectedly slowed in April, pushing the dollar to a more than two-month trough, making gold less expensive for holders of other currencies.
Lower-than-expected nonfarm payrolls numbers came as a speed bump on investors hopes over roaring recovery in the world's largest economy and tampered down bets over US Federal Reserve tightening policy earlier than expected.
Also Read
The US central bank has pledged to keep interest rates low until inflation and employment pick up. Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
"After weeks of snail-like progress higher, gold has suddenly accelerated higher, driven by a weaker US dollar and ebbing fears of an early Federal Reserve taper," OANDA senior market analyst Jeffrey Halley said in note.
Elsewhere, palladium rose 0.9 per cent to $2,954.07 per ounce after hitting an all-time high last week on supply shortfall worries.
"We expect the (palladium) market to continue tightening over the next 3 months on auto restocking and the lingering impact from Norilsk supply disruptions," Citi analysts said in a note.
Meanwhile, UBS expects the palladium market to be undersupplied by about 1 million ounces in 2021 and raised near-term outlook for the auto-catalyst metal.
Silver climbed 0.9 per cent to $27.66 while platinum was up 1.1 per cent at $1,262.32.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
