Gold extended gains on Monday, driven by purchases from banks, investors and speculators after oil prices jumped and weak US payrolls data put pressure on the dollar. Silver tracked gold, while platimum extended gains on persistent worries about output in main producer South Africa, which accounts for 80 percent of the world's supply.
Gold jumped to $912.90/913.70 an ounce from $908.40/909.20 an ounce on Friday but was still 11 percent below a record of $1,030.80 ounce hit on March 17. In addition to speculators, jewellers have been buying gold at the lows, helping the metal rebound from a two-month low of $872.90 an ounce last week.
"Most of the smart money is still on the long side. They include bullion banks, institutions and hedge funds. Whenever gold hits a new low, there's serious short covering in both gold and silver," said William Kwan of Phillip Futures in Singapore. Gold futures for June delivery on the Comex division of the New York Mercantile Exchange added $3.9 an ounce to $917.1 an ounce.
The dollar hit a high of 102.33 yen on electronic trading platform EBS, from the day's low of 101.30 yen, on buying from Japanese investors at the start of the new business year.
The euro was hardly changed at $1.5723. The US Labour Department on Friday said nonfarm employment fell by 80,000 jobs in March, the biggest drop in five years, while the jobless rate jumped to a 2-year high of 5.1 percent, raising expectations of more rate cuts in April. Oil prices jumped to a one-week high near $107 a barrel on Monday, extending last week's late rebound after the dollar fell and a fire hit a US refinery.
Spot platinum rose to $2,006/2,018 an ounce from $2,005/2,015 late in New York on Friday on supply problems in South Africa, where a power shortage had disrupted mining and sent prices to record high at $2,290 on March 4. Implats, the world's second biggest platinum producer, said South Africa did not boost its power allotment to 95 percent from 90 percent. The most active Tokyo platinum futures ended the session 96 per gram higher at 6,511 yen. Silver edged up to $17.82/17.87 an ounce from $17.77/17.82 an ounce. Spot palladium rose to $441/446 an ounce from $436/440 an ounce.