Euro rose in European trade against yen for the third straight session amid the divergent outlook for central banks in Japan and Europe, with the ECB expected to increase interest rates successively in upcoming months. 

Conversely, Bank of Japan new governor Kazuro Ueda asserted his commitment to the ultra easy monetary policy of his predecessor and ruled out extensive rate hikes.

EUR/JPY rose 0.5% to 144.70, with a session-low at 143.80, after rising 0.1% on Friday, the second profit in a row, resuming gains after a short hiatus away from three-month highs at 145.67. 

ECB

Recent strong European data showed the economy is doing better than expected in the first quarter, paving the way for further policy tightening by the European Central Bank.

ECB President Christine Lagarde said the bank still has a lot to do, and will depend on data to decide its upcoming policy decisions, noting that inflation remains high in the euro zone.

Kazuo Ueda

New Bank of Japan Governor Kazuo Ueda officially took the position on Monday and asserted the bank's commitment to easy monetary policies. 

Ueda said the ongoing challenge is how to extend monetary easing while pledging to further extend the previous policies, and noted that Bank of Japan's current monetary incentives helped boost Japan out of recession.

Ueda said extensive rate hikes aren't viable in Japan in current  conditions and that the financial markets have started to regain their calm.

Gold prices fell in European trade for the second session off 13-month highs on profit-taking and on rising speculations about a Fed rate hike next month. 

Such odds increased after strong US labor data which increased pressure on US policymakers ahead of US inflation data later this week. 

Gold Prices Today

Gold prices fell 0.95% to $1,988 an ounce, with a session-high at $2,008, after losing 0.6% on Thursday, the first loss in four days on profit-taking off 13-month highs at $2,032.

Gold prices rose 2% last week, the first weekly  profit in three months after the dollar tumbled to two-month lows against a basket of major rivals. 

Forecast-beating data

Recent US data showed the economy added 236 thousand new jobs in March, beating estimates of 238 thousand, while unemployment fell to 3.5% last month. 

US Rates

Following the data, pricing for a 0.25% rate hike by the Federal Reserve at the May 3 meeting rose from 52% to 71%, while pricing for no change in policies fell to 29%. 

Estimates

Analysts remain optimistic for gold prices in the short term as long as prices hold their ground above $1,920, with investors now awaiting for the crucial US inflation data this week to better decide on the future path. 

The SPDR

Gold holdings at the SPDR Gold Trust remained flat on Thursday, at a total of 930.91 tones, the highest since October 2022. 

Wall Street closed today with both the stocks and bonds markets closing for the official Good Friday holiday. 

European markets also closed today for celebration, with the European holiday extending to Monday for Easter. 

US economy added 236 thousand new jobs in March, beating estimates of 228 thousand, while less than February's 326 thousand addition, revised up from 311 thousand.