NEW YORK: Gold firmed on Monday as support from a weaker dollar overshadowed increased risk appetite, while the market’s focus shifted to US jobs data due later this week that could influence the Federal Reserve’s rate cut trajectory.

Spot gold was up 0.3% at $3,284.49 per ounce by 1305 GMT, after hitting its lowest since May 29 earlier in the session. Bullion has risen 5.2% so far this quarter. US gold futures gained 0.4% at $3,295.40.

“A weaker US dollar and the ongoing pressure of President (Donald) Trump on the US Federal Reserve to cut interest rates” are supporting gold, said Giovanni Staunovo, an analyst at UBS.

The dollar index hovered near its lowest level since March 2022, making greenback-priced bullion less expensive for holders of other currencies.

Trump said on Friday he would not appoint anyone to head the Federal Reserve who would not support lowering interest rates. Gold gains are limited “as risk appetite has returned to the (equities) markets following the sudden de-escalation in the Middle East situation ... and optimism on the trade deal front,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.

World shares held just below recent record highs as the revival of US/Canada trade talks helped risk sentiment. Canada on Sunday said it had rescinded its digital services tax in a bid to advance trade negotiations, bowing to pressure from Trump.—Reuters