2018.05.0702:09:00UTC+00Gold Prices Climb to 1-Week High as Dollar Pauses Rally

Gold prices reached their highest in a week on Monday, supported as the dollar fell after recording its strongest level this year in the previous session.

Spot gold had increased 0.3 percent to $1,318.46 per ounce, after earlier hitting its highest since late-April at $1,318.85.

U.S. gold futures for June delivery were up 0.3 percent at $1,319.10 per ounce.

The dollar index traded slightly below its 2018-peak early on Monday, after disappointing U.S. employment data for April and as concerns about trade disputes weighed on upward momentum.

Two Federal Reserve officials on Friday said they were keeping an open mind on the total number of interest rate rises needed this year. U.S. interest rate futures rose modestly on Friday, as traders still expect the Fed to hike key borrowing costs at its June 12-13 policy meeting in the wake of weaker-than-forecast growth in domestic payrolls and wages in April.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped 0.17 percent to 864.13 tonnes on Friday. Hedge funds and money managers reduced their net long positions in COMEX gold by 62,378 contracts to 51,985 contracts in the week to May 1, U.S. data showed.

In other precious metals, spot silver added 0.5 percent at $16.56 an ounce. Platinum gained 1.3 percent at $917.60 an ounce, having earlier notched its highest since April 25 at $918.70.

Palladium climbed one percent to $976.50 an ounce, after earlier hitting its strongest since April 27 at $977.20.