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AMSTERDAM: Gold prices jumped more than 1% on Monday, pulling along other precious metals with it, supported by a retreat in the dollar and US Treasury yields.

Spot gold was up 1.5% to $1,794.28 per ounce by 10:06 a.m. EDT (1406 GMT), after hitting its highest since April 23 at 1794.96. US gold futures advanced 1.5% to $1,794.80.

“A combination of bond yields remaining tame, the dollar under pressure, the amount of fiscal and monetary stimulus that we have in this market ... all of those factors continue to drive gold and silver prices higher,” said David Meger, director of metals trading at High Ridge Futures.

“We are in this more inflationary environment and the fact that we’ve seen as much stimulus ... it’s understandable to expect commodity prices in that environment to do quite well.” The dollar index slipped 0.4%, making gold more affordable for holders of other currencies, while benchmark US 10-year Treasury yields also retreated, reducing the opportunity cost of holding non-interest bearing gold.

Gold also found support from data showing US manufacturing activity grew at a slower pace in April.

Investors now await Friday’s labour market numbers for further clues about recovery in the world’s largest economy.

But strong economic data can also push gold higher as it means inflation will go higher, said Michael Matousek, head trader at US Global Investors.

“We need to see gold get above the $1,800 level and sustain it for a little bit, and then it could be off to the races for $2,000.”

Gold is often considered a hedge against the inflation likely to result from widespread stimulus measures.

Elsewhere, auto-catalyst metal palladium jumped 1.6% to $2,981.81 per ounce, after hitting an all-time high of $3,007.73 on Friday, on worries about a supply deficit.

Silver rose 3.56 % to $26.82 per ounce, after hitting $26.95, its highest mark since March 1. Platinum rose 3.13 % to $1,235.97.