Gold prices firmed up on Monday to hover near a three-month peak hit last week and the dollar held at 2-1/2 month lows as a disappointing U.S. employment report signaled that interest rates will likely stay low for longer.
Spot gold inched up half a percent to $1,840.47 per ounce, after having hit its highest since Feb. 11 at $1,842.91 in the previous session. U.S. gold futures were up half a percent at $1,840.80.
Friday’s U.S. jobs report was as massive disappointment as employers added just 266,000 jobs in April, far fewer than the 975,000 jobs that economists were expecting.
Data for March was revised down to show addition of 770,000 jobs instead of 916,000 previously reported.
The weak jobs report suggested the economy is still in recovery mode and bolstered the case for the Federal Reserve to keep interest rates low.
Investors await reports on consumer and producer prices, retail sales, industrial production and consumer sentiment this week for further clues about the economic recovery from the coronavirus pandemic.