London: Gold rose on Monday as the dollar slipped on receding expectations of an imminent US interest rate rise after lower than expected jobs numbers from the United States last week.
Spot gold was up 0.1 per cent at $1,326.78 (Dh4,873.20) an ounce by 1123 GMT. The precious metal hit a one-week high above $1,341 on Friday after data showed US employment growth slowed more than expected in August after two straight months of robust gains.
US gold futures were up 0.3 per cent at $1,331.
“What we’re seeing is a reversal of expectations that US interest rates would rise in September,” said ICBC Standard Bank analyst Tom Kendall. “The idea that monetary policy is going to stay super easy is good for gold.”
The US Federal Reserve’s next policy meeting takes place Sept. 20-21 and a decision to keep policy on hold could mean a lower US currency, making dollar-denominated gold cheaper and more attractive for non-US buyers.
The US Labour Day holiday is expected to keep volumes subdued on Monday, but new US data releases and any speeches from Fed officials will be watched closely for clues to the timing of any rate moves.
“We have seen the lows for the time being ... and (gold) will stay between $1,310 and $1,350 for the foreseeable future,” Marex Spectron said in a note. “The countdown has already begun to ... the conclusion to the FOMC meeting.”
On technicals, analysts see strong support at $1,315, a 23.6 per cent retracement of the August to September fall, with resistance at $1,330.
Analysts and traders are also waiting to see whether physical demand picks up in India over the coming weeks because of festivals and the wedding season.
“This has been a disrupted year for gold demand in the Indian market ... it’s going to take time for it to approach anything like normal,” Kendall said.
Spot silver gained 0.4 per cent to $19.48 an ounce, having touched a two-week high of $19.51.
Platinum rose 1.1 per cent to $1,070.75, while palladium was up 0.3 per cent at $677.80.
