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CORRECTED-PRECIOUS-Gold prices slip as strong U.S. jobs data boosts dollar, yields

Published 05/04/2021, 02:35 pm
Updated 05/04/2021, 07:36 pm
© Reuters.
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(Corrects U.S. gold futures price to $1,726.40 per ounce from $11,762.40 in second paragraph)

* U.S. non-farm payrolls surge more than 900,000 in March

* Global stocks hit their highest in a month and half

* Platinum scales more than 2-week high before declining

By Diptendu Lahiri

April 5 (Reuters) - Gold prices eased on Monday as U.S. Treasury yields rose and the dollar strengthened after better-than-expected jobs data from the world's top economy fuelled optimism over a swift recovery.

Spot gold XAU= was down 0.1% to $1,726.36 per ounce by 0733 GMT. U.S. gold futures GCcv1 were little changed at $1,726.40 per ounce.

"Strong payroll data has boosted the dollar and yields and is weighing on gold prices. I think gold's primary trend is bearish," said DailyFX strategist Margaret Yang.

"Global economic growth is definitely taking a positive turn, however, it is uneven. Growth in the U.S. is particularly strong, but parts of the EU are having a challenging time with the third wave of virus."

The U.S. economy created the most jobs in seven months in March as more Americans got vaccinated and the government doled out additional pandemic relief money. lifted global stock prices to a more than one-month high on Monday, while benchmark U.S. Treasury yields held near a 14-month peak. MKTS/GLOB US/

The dollar .DXY rose 0.1% against its rivals ahead of U.S. services sector data, making gold more expensive for holders of other currencies. USD/

U.S. President Joe Biden's announcement of a long-awaited $2 trillion-plus job plan last week has raised some concerns over inflation. investors view gold as a hedge against inflation, but higher Treasury yields, which translate into a higher opportunity cost for holding bullion, have challenged that status.

"It is becoming clear to me that gold's sensitivity is not to future inflation expectations, but rather, to moves in U.S. bond yields, notably the 10-year tenor," OANDA senior market analyst Jeffrey Halley said in a note.

Elsewhere, silver XAG= fell 0.8% to $24.77 per ounce and palladium XPD= was down 1.1% at $2,637.64.

Platinum XPT= dipped 0.5% to $1,203.49 per ounce after hitting its highest since March 18 earlier in the session at $1,218.

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