【TOP1 Evening】Brent Oil Tops $60; Gold struggles to maintain gains, U.S. dollar rise over 91

Gold 

Gold prices edged higher on Monday, as softer U.S. jobs data cemented hopes of further fiscal stimulus and pressured the dollar, although bullion's gains were capped by higher Treasury yields.

Spot gold rose 0.15% to $1813.73 per ounce, silver rose 0.66% to $27.026 per ounce by 18:00 (GMT+8).

"Markets are justifiably spooked by the very low non-farm payrolls on Friday and that has raised economic uncertainty as well as high expectations for more fiscal stimulus from the U.S., gold has responded to that," said Howie Lee, an economist at OCBC Bank.

However, limiting gold's advance was benchmark 10-year Treasury yields at their highest since March last year. Higher yields increase the opportunity cost of holding non-yielding bullion.  

Yields are "probably the biggest single headwind" for gold, Nicholas Frappell, global general manager at ABC Bullion said, adding gold remains vulnerable to the dollar, which has more room to extend its recent gains.

Investors' focus now remains on the progress of the $1.9 trillion COVID-19 relief package, which House Speaker Nancy Pelosi believes will pass before March 15 with or without bipartisan support.   

Gold can rise to $1,900 levels later in 2021 as Treasury yields are capped at some stage and focus shifts to inflation expectations, OCBC's Lee said.    

Forex

The dollar nursed losses against most currencies on Monday as disappointing U.S. jobs data caused some investors to scale back bets on a rebound in the greenback.

The U.S. dollar index rose 0.15% to 91.16 by 18:00(GMT+8) on Thursday.

The euro held gains versus the dollar but faces a test later on Monday with data that is expected to show German industrial output growth slowed at the end of last year.

Speculators have been reducing short positions in the dollar, but some analysts say better U.S. economic data and continued progress in fighting the coronavirus pandemic will be needed for further dollar gains.

"Soft non-farm payrolls has really pulled the ladder out from under the dollar," said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities.

"Now the markets are questioning whether the dollar can rise any further. A lot depends on the coronavirus, but we also need to know when U.S. fiscal stimulus will pass."

The British pound bought $1.3736, close to an almost three-year high.

The dollar was quoted at 105.38 yen, having pulled back from a three-month high reached on Friday.

Exports from Britain to the European Union fell by 68% in January as trade was disrupted after the end of a transition period following Britain's departure from the European Union, according to a trade body representing hauliers.

Since the start of the year, businesses and hauliers have had to adapt to new trading arrangements, including new systems for companies and officials in the British province of Northern Ireland.

The sharp drop in exports will obviously drag down the recovery prospects of the British economy, and the performance of the pound may be dragged down.

Crude Oil

The sharp drop in exports will obviously drag down the recovery prospects of the British economy, and the performance of the pound may be dragged down.

U.S. West Texas Intermediate (WTI) crude was at $57.361 barrel, rose 0.93%, Brent was down to $59.903 a barrel, rose 0.99% by 18:00(GMT+8).

"A weak U.S. jobs report boosted hopes of further stimulus measures," ANZ analysts said, adding that energy products and industrial metals benefited from an increased appetite for risk among investors.

A weaker dollar against most currencies on Monday also supported commodities, with dollar-denominated commodities becoming more affordable to holders of other currencies.

Meanwhile Saudi Arabia's pledge of extra supply cuts in February and March on the back of reductions by other members of the Organization of the Petroleum Exporting Countries and its allies, including Russia, is helping to balance global markets.

Still, stronger crude prices are encouraging U.S. producers to increase output, while anti-coronavirus lockdowns across parts of Europe and Asia are keeping a lid on fuel demand, analysts said.

Stocks

Stocks in Asia-Pacific were mixed on Monday trade.

Nikkei 225 rose 609.31 points or 2.12%, close at 29,388.50.

S&P/ASX 200 rose 40.20 points or 0.59% to close at 6,880.70.

Hang Seng Index rose 30.79 or 0.11% to 29,319.47.

South Korea's Kospi fell 29.39 points or 0.94% to 3,091.24.

Dogecoin rose to all-time high Sunday, as Elon Musk tweets "Who let the Doge out" amid the rally.

The Shiba Inu-themed digital coin surpassed 8 cents for the first time, just a week after crashing to 2.5 cents and sparking an outcry on Reddit. It rose 53% in the last 24 hours to 8.2 cents as of 5:45 p.m. in New York on Sunday, according to CoinMarketCap data, breezing through its recent record of 7.8 cents posted in late January.

It now has a market value of $10 billion, making it the 8th-biggest cryptocurrency.

The price recovered over the past week after Tesla Inc. co-founder Elon Musk returned from his self-imposed Twitter break to send a series of tweets promoting Dogecoin.

Started as a joke in 2013, Dogecoin has been riding a wave of newfound popularity on social media, powered by the speculative frenzy of retail investors.

Bitcoin has also rallied this week, topping a record of $40,000, before paring gains.