Gold rises as focus returns to growth concerns

BENGALURU, July 08 (Reuters): Gold prices rose on Monday, 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 per cent at $1,406.79 per ounce, as of 0721 GMT. US gold futures climbed 0.6 per cent 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 1.0 per cent 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.