Gold prices on Monday rose off a two-month low as investors wagered that stimulus from central banks will remain in place for the foreseeable future, bolstering the case for bullion, despite a powerful rebound from equities off their lows in the U.S.

The moves higher for gold on Monday come after the commodity closed out Friday’s trade lower and notched a sharp weekly slide, following an unexpected rise in U.S. jobs for May and a drop in the nation’s unemployment rate to 13.3% from 14.7%, pushing prices for the haven metal to their lowest finish since April.

August gold on Comex climbed $13.50, or 0.8%, at $1,696.10 an ounce, after finishing last week’s trade at the lowest level since early April and notching a weekly decline of 3.9%, according to FactSet data based on the most-active contracts.

Meanwhile, July silver added 39 cents, or 2.2%, to trade at $17.870 an ounce, settling at its lowest level in two weeks, following a 5.5% weekly decline on Friday.

Source : Market Watch