PRECIOUS-Gold gains on hopes for low rates after bleak U.S. jobs data

* U.S. jobs growth slows sharply in April
* Dollar hovers close to over 2-month low
* UBS raises palladium price forecasts

(Updates prices, analysts comment)
By Brijesh Patel
May 10 (Reuters) - Gold prices edged higher on Monday as
tepid U.S. jobs numbers last week cemented expectations that
interest rates will remain low for some time, denting the dollar
and boosting non-yielding metal's appeal.
Spot gold XAU= was up 0.5% to $1,839.30 per ounce by 1227
GMT, after hitting its highest since Feb. 11 at $1,842.91 on
Friday. U.S. gold futures GCv1 gained 0.5% to $1,840.30.
"We are seeing a carry over this morning from Friday's
non-farm payrolls figures which were surprisingly disappointing.
Clearly both the U.S. dollar and yields remain on the back foot,
supporting gold," said independent analyst Ross Norman. US/
U.S. nonfarm payrolls data on Friday showed jobs growth
unexpectedly slowed in April, pushing the dollar to a more than
two-month trough, making gold less expensive for holders of
other currencies. USD/ The lower-than-expected job numbers came as a speed bump on
investors' hopes of a roaring recovery in the world's largest
economy and tamped down bets on the U.S. Federal Reserve
tightening policy earlier than expected.
The U.S. central bank has pledged to keep interest rates low
until inflation and employment pick up. Lower interest rates
decrease the opportunity cost of holding non-yielding bullion.
However, Julius Baer analyst Carsten Menke said, holdings of
physically backed gold products have not recorded any inflows in
months.
"What is missing from the recent rise in prices and would be
required to revive the rally is the participation of safe-haven
seekers," Menke said in a note.
Elsewhere, palladium XPD= rose 2.2% to $2,991.29 per ounce
after hitting an all-time high last week on supply shortfall
worries.
"We expect the (palladium) market to continue tightening
over the next three months on auto restocking and the lingering
impact from Norilsk supply disruptions," Citi analysts said in a
note.
UBS expects the palladium market to be undersupplied by
about 1 million ounces in 2021. Silver XAG= climbed 1.02% to $27.71, while platinum XPT=
was up 1.4% to $1,266.99.

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