Gold rose 1 percent to a seven-week high on Monday, climbing for the second straight session after U.S. jobs rose at the slowest pace in more than a year, fueling expectations the U.S. Federal Reserve could postpone an anticipated rate increase.
Nonfarm payrolls rose 126,000 last month, less than half February's pace and the smallest gain since December 2013, the Labor Department said on Friday. The data pushed the U.S. dollar lower, making dollar-denominated gold cheaper for holders of other currencies.
That data could prod the U.S. central bank to delay a rate increase that analysts had expected to come in June or September amid signals from the Fed it was ready to tighten monetary policy in view of a strengthening labor market.
"I think people are feeling comfortable being long gold after the payrolls data," said Yuichi Ikemizu, branch manager at Standard Bank in Tokyo.
Spot gold was up 0.6 percent at $1,218 an ounce after hitting a session high of $1,224.10. U.S. gold for June delivery climbed $17.70 to settle at $1,218.60 an ounce, the highest since February 13.