Spot gold was little changed above the $1730 an ounce level in a thin trading session on Friday as many markets around the world are closed for the Good Friday holiday. Gold remained above a 3-week low of $1677 an ounce touched early in the week as both the US dollar and Treasury yields retreated slightly. Also, President Biden unveiled a $2.25 trillion infrastructure plan to boost the economic recovery, which could push inflation higher. However, the yellow metal lost 10% in Q1, the biggest quarterly drop in over 4 years and is back where it was in February of last year, before the coronavirus pandemic, amid a better-than-expected vaccination rollout while bets of a brighter economic outlook and fears over a spike in inflation and debt levels, prompted a bond sell-off and a dollar rally, raising the opportunity cost of holding bullion. Adding further pressure to gold is investors' interest in bitcoin.

The government budget deficit in France rose slightly to EUR 47.5 billion in January-February of 2021 from EUR 35.2 billion in the corresponding period of the previous year. Spending increased 16.3 percent to EUR 75.4 billion while revenues went down 0.2 percent to EUR 39.9 billion. Meantime, the Treasury special accounts, which track the balance of inflows and outflows for targeted revenues and outlays, for example receipts from local government posted a EUR 12 billion shortfall, higher than a EUR 10.4 billion gap in the same period the year before.

The yield on the benchmark 10-year Treasury note retreated for the second session to 1.67% on Friday after hitting fresh 14-month highs of 1.78% early in the week. Investors digest President Biden new infrastructure plan worth $2.25 trillion which will likely face strong GOP opposition as it will be funded by higher corporate taxes. Also, traders await the payrolls report early in the morning for further clues on the labour market. Initial jobless claims have been pointing to a choppy labour market and fresh price data showed tame inflation. The bond market appears to be stabilising after a rally that started in August 2020 and intensified from January as coronavirus vaccination and further fiscal stimulus support prospects of a strong economic recovery but could also lead to a spike in inflation and debt levels. In the first quarter of 2021, the 10-year yield went up 83 basis points, the strongest increase in over a decade.

Stock futures in the US traded in the green on Friday, lifted by President Joe Biden’s massive infrastructure plan and news that US factory growth posted its highest reading since 1983. Reports that the yield on the benchmark 10-year Treasury note fell slightly to 1.71% on Thursday also supported sentiment. Meanwhile, the US FDA said that Moderna Inc can put up to 50 percent more doses of vaccine in each vial, a change that will allow the company to speed up the pace of its shipments. Traders now anticipate US nonfarm payrolls for March later in the day where market forecast a jump of 647 thousand from 379 thousand in February. Meantime, the jobless rate in the country is expected to fall to 6% from 6.2%. On Thursday, the Dow Jones added 172 points to 33,153, the S&P 500 47 points to a record 4,020, and the Nasdaq 233 points to 13,480. Markets will be closed on Friday for the Good Friday holiday.

WTI crude futures jumped 3.5% to $61.24 a barrel on Friday morning in Asia, boosted by reports that OPEC+ has reached a deal to gradually ease output cuts from May. The cartel reportedly agreed to ease production curbs by 350,000 barrels per day in May, another 350,000 bpd in June, and a further 400,000 bpd or so in July. Prices have been recently under pressure due to concerns about extended lockdown measures in Europe, slow vaccine rollouts, and a surge in COVID-19 cases in some regions or countries, including India, Brazil, and some parts of China bordering Myanmar. Meanwhile, data from the EIA showed an unexpected draw in US crude stocks last week, while the API report released a day earlier showed a larger-than-expected build in inventories.

South Korea's consumer price inflation increased to 1.5 percent year-on-year in March 2021 from 1.1 percent in the previous month and beating market expectations of 1.35 percent. It was the highest inflation rate since January last year, due mainly to a faster rise in prices of housing & utilities (0.4 percent vs 0.1 percent) while transport prices rebounded sharply (2.0 percent vs -2.0 percent). Also, inflation accelerated for restaurants & hotels (1.4 percent vs 1.2 percent in February) and was steady for health (at 1.1 percent). On the other hand, prices continued to increase for food & non-alcoholic beverages (8.4 percent vs 9.7 percent) and clothing & footwear (0.3 percent vs 0.5 percent). In addition, prices of and education fell less (-2.7 percent vs -2.9 percent). On a monthly basis, consumer prices edged up 0.1 percent, while markets had forecast a 0.1 percent drop.

The Australian dollar rose 0.2% to 0.7632 against the US dollar on Friday, after falling to a three-month low in the previous session. Traders were confident that the US economy will show a strong economic recovery this year following a fast COVID-19 vaccine rollout and further fiscal spending. President Joe Biden on Wednesday announced a $2.3 trillion infrastructure plan, with the second part of the stimulus plan is expected later in the month. In local news, a three-day snap lockdown on Thursday was lifted on Queensland as authorities managed to contain the spread of COVID-19. The state reportedly saw no new cases today as the country began a long Easter weekend. Market participants now await US data later in the day that is expected to show a rise in job creation and a lower jobless rate in March.

Chicago lumber futures were up for a 4th consecutive session to trade above $1010 per thousand board, shy of a record high of $1,040 hit in mid-March as demand is outstripping supply. Since last spring lumber prices have risen 180% as the stay-at-home lifestyle has encouraged homeowners to expand or remodel their existing dwellings and low mortgage rates exacerbated the home-building spree. Meanwhile, recently wildfires in California and Oregon and the recent freezing temperatures in Texas had increased the number of homes needing to be built and limited domestic supply.

The number of Americans filing for unemployment benefits rose to 719 thousand in the week ended March 27th, from last week's 658 thousand and above market expectations of 680 thousand. Still, claims remained close to their lowest level in a year, as more businesses reopened thanks to the vaccine rollout programme and the government's massive $1.9 trillion pandemic relief package. The 4-week moving average, which removes week-to-week volatility, declined also to 719 thousand, the lowest since March 2020. On a non-seasonally adjusted basis, initial claims were up to 714 thousand, from 651 thousand in the previous week, led by larger increases in the states of Virginia, Georgia and Kentucky.