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GOLD rose 1 percent to a more than one-week high yesterday through US$1 300 an ounce as the dollar slipped and equities paused a recent rally.

Spot gold was up 0,7 percent at US$1 300,11 an ounce after rising as much as 1 percent to US$1 303,61 per ounce, its highest since March 28. US gold futures were up 0,7 percent at US$1 304,60 an ounce.

“There’s a little bit of easing risk appetite, the US dollar is weak and we saw Chinese central bank’s acquisition of gold for a fourth month. A combination of all these factors have moved gold into the US$1 300s,” said Bart Melek, head of commodity strategies at TD Securities in Toronto.

“There is significant support around the US$1 290 levels. We continue to see reasons for more gold positioning should volatility move higher.”

The markets are waiting for the minutes of the Federal Open Market Committee’s (FOMC) March policy meeting, due tomorrow, for cues on the Fed’s future monetary policy stance.

“If the US Federal Reserve had discussed about rate cuts (in March), that should weaken the dollar a little bit and help gold,” Melek added.

Meanwhile, China raised its gold reserves by 0,6 percent to 60,62 million ounces by end-March, central bank data showed.

A rally in stocks, which had capped gold’s gains recently, paused, while the dollar shed 0,3 percent against a basket of currencies. A weaker dollar makes gold cheaper for holders of other currencies.

Data on Friday showed employment growth in the US accelerated from a 17-month low in March, assuaging fears of an abrupt slowdown in economic activity, but a moderation in wage gains supported the Fed’s decision to suspend further interest rate rises this year.

However, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell as much as 3 percent in the previous week, its biggest weekly percentage decline since end-November 2016. — Reuters.