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Gold prices rose yesterday, shaking off early losses to consolidate above the $1 400 pivot, as focus shifted to global growth concerns and interest rate cuts by major central banks.

Spot gold was up 0,5 percent at $1,406.79 per ounce, as of 0721 GMT. US gold futures climbed 0,6 percent to $1,408.90 an ounce.

Also helping gold, the dollar eased from multi-week highs and global stock markets were in red, helping the metal reverse course following a more than 1 percent fall on Friday after strong US jobs data lowered the likelihood of an aggressive rate cut by the US Federal Reserve.

“Despite the strong (US jobs) numbers, the market is expecting a rate cut, just not as aggressive it would have been. We are still in a rate easing cycle right now,” said Howie Lee, an economist at OCBC Bank.

“Additionally, $1 400 is a pretty strong support level for gold. Also, growth still remains weak globally and we have geo-political tension between the US and Iran. Overall factors are still supportive for higher gold prices,” he added.

US non-farm payrolls rebounded in June to 224 000, the most in five months, data showed on Friday, beating economists’ consensus estimate of 160 000.

Fed Chairman Jerome Powell is expected to provide further cues on the near-term outlook for monetary policy this week at his semi-annual testimony to the US Congress on the economy.

However, persistent moderate wage gains and mounting evidence the economy was losing momentum could still encourage Fed to cut interest rates this month.

A rate cut by the Fed could also prompt China’s central bank to cut its benchmark policy rate for the first time in four years to support the slowing economy, analysts say.

Lower interest rates would support gold because they reduce the opportunity cost of holding non-yielding bullion.  — Reuters.