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Gold held firm near a three-month high on Monday after last week’s miss on the U.S. jobs growth numbers weighed on the dollar and bolstered expectations that interest rates will remain low.

·         Spot gold rose 0.4% to $1,836.89 per ounce by 1:44 p.m. EDT (1744 GMT), after touching its highest since Feb. 11 at $1,845.06.

·         U.S. gold futures settled 0.3% higher at $1,837.60.

 

·         “The disappointing U.S. job number ultimately catalyzed a round of algorithmic short-covering,” said TD Securities commodity strategist Daniel Ghali.

Also supporting the precious metal was the return of discretionary capital flowing into gold alongside strong physical demand from China and India last month prior to Indian lockdowns, Ghali added.

 

·         U.S. nonfarm payrolls data on Friday showed jobs growth unexpectedly slowed in April, pushing the dollar to an over two-month trough, making gold less expensive for holders of other currencies.

The lower-than-expected job numbers upset investors’ hopes of a roaring recovery in the world’s largest economy and that the U.S. Federal Reserve might tighten policy earlier than expected.

 

·         The U.S. central bank has pledged to keep interest rates low until inflation and employment pick up. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

 

·         “What is missing from the recent rise in prices and would be required to revive the rally is the participation of safe-haven seekers,” Julius Baer analyst Carsten Menke said in a note.

 

·         Elsewhere, palladium rose 1.5% to $2,971.39 per ounce after hitting an all-time high last week on supply shortfall worries.

 

·         UBS raised its end-June and end-September price forecasts for the metal, used mainly in emission-reducing auto catalysts for vehicles, to $3,100 per ounce.

 

The bank expects the palladium market to be under-supplied by about 1 million ounces this year.

 

·         Silver eased 0.2% to $27.39 per ounce.

 

·         Platinum climbed 0.8% to $1,258.87 per ounce.

Both metals earlier reached a more than two-month peak.

 

·         Cryptocurrency ethereum hits new record high again; dogecoin slumps
Ethereum, the second-largest coin by market capitalization, hit an all-time high of $4,200 and was last up around 5.2% at $4,133.40.

 

·         Infrastructure plan should cost up to $800 billion, McConnell says ahead of Biden meeting

Senate Minority Leader Mitch McConnell said an infrastructure plan should cost no more than $800 billion, setting down a marker ahead of a critical week for efforts to craft a bill that would refresh U.S. transportation, broadband and water systems.

 

·         Biden urges employers to boost wages but warns workers they’ll lose unemployment pay if they reject jobs

President Joe Biden on Monday urged U.S. companies to boost pay for workers as he outlined the steps his administration is taking to spur hiring after disappointing job creation in April.

·         Some states must wait as U.S. Treasury opens $350 billion in state-local COVID aid

 

·         Fed’s Evans says employment and inflation need to pick up before policy changes

Chicago Federal Reserve President Charles Evans told CNBC on Monday that employment and inflation will have to pick up substantially before he will change his position on monetary policy.

Speaking after Friday’s hugely disappointing jobs report, the central bank official said he still thinks the employment picture is strong, though significant areas of weakness remain.

- Fed's Evans: April's slow job creation likely a "one month thing" - CNBC

April's unexpectedly small increase of 266,000 payroll jobs is likely a "one month thing" associated with the complexities of reopening the economy after the coronavirus pandemic, Chicago Federal Reserve president Charles Evans said Monday.

- Chicago Fed President Charles Evans: Many price increases are reversals of pandemic declines

Chicago Fed President Charles Evans joined “Squawk Box” on Monday to discuss how temporary he thinks inflation may last and how fears may impact Fed policy decisions.

 

·         U.S. consumers expect near-term inflation bump, medium-term outlook steady

Consumers surveyed in April said they expect inflation to rise by a median of 3.4% over the next year - the highest level since September 2013. Expectations for inflation over the next three years were unchanged at 3.1%.

 

·         Inflation headed above 3% in 2021: State Street Global Advisors

State Street Global Advisors’ Mehvish Ayub gives her sector allocations as the recovery continues, and also gives State Street’s house view of incoming inflationary pressures.

 

·         CORONAVIRUS UPDATES:

COVID-19 infections are still rising in 30 countries.

 

New infections reported by region

Of every 100 infections last reported around the world, more than 72 were reported from countries in Asia and the Middle East.

 

·         FDA permits use of the Pfizer-BioNTech Covid vaccine in kids ages 12 to 15

 

·         EU Recovery Fund success could the pave way for a repeat: EU Commission

The European Union’s huge post-pandemic recovery fund could become a more permanent feature if it is successful in firing up growth and fostering a greener and more digital economy, the European Commission’s top economic officials said on Monday.

The 27 EU nations made an unprecedented agreement last year to jointly borrow 750 billion euros for a fund to help fight the economic slump caused by COVID-19 and address the challenges of climate change.

 

·         WHO designates India variant as being of global concern

A World Health Organization official said Monday it is reclassifying the highly contagious triple-mutant Covid variant spreading in India as a “variant of concern,” indicating that it’s become a global health threat.

The World Health Organziation said on Monday that the B.1.617 variant first identified in India was being classified as a variant of global concern.

"We classify it as a variant of concern at a global level," Maria Van Kerkhove, WHO technical lead on COVID-19, told a briefing. "There is some available information to suggest increased transmissibility."

 

·         One AZ COVID-19 vaccine dose gives 80% lower death risk - English data

 

·         Europe dares to reopen as 200 millionth vaccine dose delivered

As its vaccination drive reaches a third of adults and COVID-19 infections ease, Europe is starting to reopen cities and beaches, raising hopes that this summer’s holiday season can be saved before it is too late.

With 200 million vaccine doses delivered, the European Union is on track to achieve its goal of inoculating 70% of its adult population by summer, Commission President Ursula von der Leyen tweeted on Sunday.

 

·         Russia's Putin says 21 mln in Russia vaccinated against COVID-19

President Vladimir Putin said on Monday that 21.5 million Russians - about 15% of the population - had now been vaccinated against COVID-19 and urged all to follow suit.

 

·         Malta's restaurants reopen, COVID vaccination reaches 60% of adults

 

·         Taiwan says will work with EU, other democracies on chips

Taiwan will work with the European Union and other democracies to ensure a more "resilient supply" of crucial goods like semiconductors, President Tsai Ing-wen said on Monday, amid a chip shortage that has snarled the auto and other industries.

 

·         Jerusalem violence leads to rockets, air strikes

Violent clashes over Jerusalem escalated dramatically on Monday with Gaza health officials saying at least 20 people, including nine children, were killed by Israeli air strikes launched after Palestinian militant groups fired rockets close to Jerusalem

Israel’s military said it carried out strikes against armed groups, rocket launchers and military posts in Gaza after militants there crossed what Israeli Prime Minister Benjamin Netanyahu called a “red line” by firing on the Jerusalem area for the first time since a 2014 war.