LONDON (Dispatches) - Gold hit a six-week high on Monday, buoyed by disappointing U.S. jobs data on Friday that dimmed the prospects for an aggressive run of interest rate increases in the world's biggest economy.
U.S. job growth slowed in May and employment gains in the prior two months were not as strong as previously reported, suggesting the labor market was losing momentum.
Higher interest rates put pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion.
Spot gold was steady at $1,280.10 per ounce by 1132 GMT, after climbing 1.1 percent gain on Friday. It hit a peak of $1,282 an ounce early in the session, its highest level since April 21.
"Gold has got a bit of a lift from payroll numbers from Friday which has carried through to today but there is also support from terrorist events," ETF Securities commodities strategist Nitesh Shah said, referring to an attack in London at the weekend.
"Gold tends to be the port of call when people are anxious and events like that make people anxious," he said.
British Prime Minister Theresa May was set to resume campaigning on Monday for the national election due in three days. The vote is expected to be much tighter than previously predicted.