* Technical support at $1,315, resistance at $1,330
* Silver hits over two-week high
By Pratima Desai and Sethuraman N R
LONDON, Sept 5 Gold held steady on Monday, close
to a one-week high touched in the previous session, as the
dollar dipped on receding expectations of an imminent U.S.
interest rate rise but the yellow metal's gains were capped by
stronger global stocks.
Spot gold was up 0.1 percent at $1,326.33 an ounce by
1851 GMT. The precious metal hit a one-week high of $1,328.73 on
Friday after data showed U.S. employment growth slowed more than
expected in August after two straight months of robust gains.
U.S. gold futures were up 0.3 percent at $1,330.7.
Cooling U.S. rate hike expectations helped world shares
notch up solid gains on Monday, though they came off highs as
investors concluded an oil market pact between Saudi Arabia and
Russia lacked substance.
"What we're seeing is a reversal of expectations that U.S.
interest rates would rise in September," said ICBC Standard Bank
analyst Tom Kendall. "The idea that monetary policy is going to
stay super easy is good for gold."
The U.S. Federal Reserve's next policy meeting takes place
Sept. 20-21 and a decision to keep policy on hold could mean a
lower U.S. currency, making dollar-denominated gold cheaper and
more attractive for non-U.S. buyers.
The U.S. Labor Day holiday is expected to keep volumes
subdued on Monday, but new U.S. data releases and any speeches
from Fed officials will be watched closely for clues to the
timing of any rate moves.
JPMorgan analysts expect prices to average $1,425 an ounce
in the first half of next year.
"Our bullish base case remains anchored to the fact that
economic growth largely remains uninspiring while rates still
remain very low or negative (especially on a real basis),
something a 25 basis point rate hike in the U.S. in September or
December will not wholly reverse," JPMorgan said in a note.
The dollar index, which measures the greenback against a
basket of six major currencies, stood at 95.762, down
about 0.1 percent.
On technicals, analysts see strong support at $1,315, a 23.6
percent retracement of the August to September fall, with
resistance at $1,330.
Analysts and traders are also waiting to see whether
physical demand picks up in India over the coming weeks because
of festivals and the wedding season.
Spot silver gained 0.4 percent to $19.49 an ounce,
having earlier touched a session high of $19.56, a peak since
Platinum rose 1 percent to $1,068.80, while palladium
added 0.4 percent to $678.50.
(Additional reporting By Vijaykumar Vedala in Bengaluru;
Editing by David Goodman)