Gold strengthened on Monday, extending gains made in the previous session, as a disappointing US jobs data fuelled fears of a slowdown in recovery of the world's biggest economy and a softer dollar lent support. "The weak US data has increased the possibility of a third round of quantitative easing," said Ong Yi Ling, an analyst at Phillip Futures.
Spot gold edged up 0.3 percent to $1,545.75 an ounce by 0607 GMT, building on three consecutive weeks of gains. US gold gained 0.3 percent to $1,547.40. Trading was thin as markets in China, Hong Kong and South Korea were shut on a public holiday, traders said. Spot silver rose 1.5 percent to $36.75 in thin holiday trade, after dropping to a 1-1/2 week low of $35.13 in the previous session.
Silver prices were nearly 26 percent lower than its record high of $49.51 hit on April 28, but still up 19 percent on the year, compared to gold's 9-percent rise. Holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, dropped to an eight-month low of 9,885.4 tonnes by June 3.
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