Gold futures advanced modestly during noon trade in the domestic market on Monday as investors weighed the probability of the US Federal Reserve raising interest rates further in the coming months after a maiden lift-off in December since 2006.

Better than expected US jobs numbers for March signaled upbeat health of the US labour market, raising speculation that the Fed may proceed with its plan to raise borrowing costs at a gradual pace. Still, the chances of a rate hike this month are seen as slim given the Fed policymakers’ recent signals over the risks facing the US economy from heightened global uncertainty.

The US economy added 215,000 jobs in March, compared to a revised 245,000 in February, and topping analysts’ estimates of 205,000.

Gold prices rose by 0.14 per cent on Monday as a weaker dollar raised the appeal of gold as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus increasing demand. At the MCX, Gold futures for April 2016 contract is trading at Rs 28,080 per 10 gram, up by 0.14 per cent after opening at Rs 28,080, against the previous closing price of Rs 28,040. It touched the intra-day high of Rs 28,123.

The US is to release data on factory orders, while Boston Fed President Eric Rosengren, Minneapolis Fed President Neel Kashkari and Dallas Fed President Rob Kaplan are scheduled to speak throughout the day.

In the week ahead, market players will be turning their attention to Wednesday’s minutes of the Federal Reserve’s latest policy meeting for fresh clues on the timing of the next US rate hike.

At the MCX, Gold futures for April 2016 contract is trading at Rs 28,091 per 10 gram, up by 0.18 per cent after opening at Rs 28,080, against the previous closing price of Rs 28,040. It touched the intra-day high of Rs 28,123.

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