Gold holds near seven-week high

Spot gold gained 1% to $4,344.40 an ounce

Gold held near a more than seven-week high on Monday on a weaker dollar and lower U.S. yields ahead of key jobs data, while silver jumped but remained short of Friday’s record high.

Spot gold gained 1% to $4,344.40 an ounce by 0656 GMT. Bullion hit its highest since October 21 on Friday.

The dollar hovered near a two-month low hit last week, making bullion more attractive for overseas buyers, while benchmark 10-year U.S. Treasury yields edged lower.

Gold is likely to remain well bid into U.S. non-farm payrolls, as evidence of labour market slack would keep front-end yields capped and the dollar weak, supporting a push toward $4,380–$4,440 after a firm rebound from the $4,243 support zone, OANDA senior market analyst Kelvin Wong said.

Markets remain focused on the Fed’s policy outlook after the U.S. central bank delivered a 25-basis-point rate cut last week in a rare split decision, while signalling a likely pause as inflation remains sticky and the labour outlook is uncertain.

Two Fed officials who dissented said inflation was still too high to justify easier policy. Investors are currently pricing in two rate cuts next year, with this week’s U.S. jobs report seen as a key test of those expectations.

Non-yielding assets, such as gold, typically benefit in a lower interest rate environment.

India’s move to allow pension funds to invest in gold and silver ETFs could lift institutional participation, ANZ said in a note. We believe such regulation can boost confidence and strengthen investor sentiment, supporting higher allocations across portfolios.

Spot silver gained 2% to $63.23 per ounce. It hit a record high of $64.65 on Friday before closing sharply lower.