Gold prices rise one-week high

NEW DELHI, Apr 08 (Reuters): Gold prices rose to a more-than-one-week peak on Monday as the dollar slipped after data showed US wage growth slowed last month, while investors awaited minutes of the US Federal Reserve's March meeting later this week.

Spot gold gained 0.4 per cent to $1,296.87 per ounce by 0746 GMT, after touching its highest since March 29 at $1,297.86 earlier in the session. US gold futures were also up 0.4 per cent at $1,301 an ounce.

"The dollar index is pulling back from multi-week highs and gold prices are riding this tailwind of softer dollar," said Margaret Yang, a market analyst with CMC Markets, Singapore.

"Though the non-farm payrolls data was better than expected, the manufacturing jobs fell which is a bad signal for the sector and doesn't show a very bright picture of the economic outlook."

The dollar was down 0.1 per cent against key rivals as US Treasury yields extended their decline after the US jobs report signalled a slowdown in wage growth even as employment accelerated from a 17-month low in March. The data on Friday also showed job cuts in the manufacturing sector, the first decline in factory payrolls since July 2017.

The moderation in wage growth supported the Federal Open Market Committee's (FOMC) decision to abandon any interest rate hikes this year. "But ultimately the wild card remains the US-China trade negotiations," said Stephen Innes, head of trading and market strategy at SPI Asset Management, adding that the equity markets will spike on news of an agreement, denting the near-term appeal of gold.