Gold Rises As Yields Retreat

Gold Rises As Yields Retreat

Gold prices rose on Monday as the dollar weakened and U.S. Treasury yields retreated ahead of a raft of U.S. economic data due this week.

Spot gold rose half a percent to $1,777.52 per ounce, while U.S. gold futures were up 0.6 percent at $1,777.60.

The U.S. economic reports due this week are expected to show a strong rebound in U.S. activity led by fiscal stimulus and further reopening of the economy.

Today’s data include ISM manufacturing PMI, followed by ADP private sector payrolls on Wednesday. The focus will then shift to the weekly jobless data on Thursday and nonfarm payrolls data on Friday.

Economists expect that nonfarm payrolls grew by 978,000 jobs in April, up from March’s gain of 916,000 jobs.

Fed Chair Powell will speak in an event hosted by the National Community Reinvestment Coalition later in the day.

German retail sales grew by a real 7.7 percent on a monthly basis in March, Destatis reported earlier today. That was faster than the 2.7 percent increase in February and 3 percent rise economists had forecast.

On a yearly basis, retail sales rebounded 11 percent, reversing a 6.6 percent fall in the previous month and confounding expectations for a decrease of 0.3 percent.

The Eurozone manufacturing activity logged a record expansion in April, albeit at a slower than previously estimated pace, final data from IHS Markit showed.

The manufacturing Purchasing Managers’ Index improved to 62.9 in April from 62.5 in March. The flash reading was 63.3.

This was the highest level since June 1997 and the sector has expanded for the tenth straight month.