PRECIOUS-Gold gains on dollar weakness, US jobs data awaited

By Anushree Mukherjee and Ishaan Arora

June 30 (Reuters) - Gold firmed on Monday as support from a weaker dollar overshadowed increased risk appetite, while the market's focus shifted to U.S. jobs data due later this week that could influence the Federal Reserve's rate cut trajectory.

Spot gold XAU= was up 0.3% at $3,284.49 per ounce by 1305 GMT, after hitting its lowest since May 29 earlier in the session. Bullion has risen 5.2% so far this quarter.

U.S. gold futures GCcv1 gained 0.4% at $3,295.40.

"A weaker U.S. dollar and the ongoing pressure of President (Donald) Trump on the U.S. Federal Reserve to cut interest rates" are supporting gold, said Giovanni Staunovo, an analyst at UBS.

The dollar index =USD hovered near its lowest level since March 2022, making greenback-priced bullion less expensive for holders of other currencies. USD/

Trump said on Friday he would not appoint anyone to head the Federal Reserve who would not support lowering interest rates.

Gold gains are limited "as risk appetite has returned to the (equities) markets following the sudden de-escalation in the Middle East situation ... and optimism on the trade deal front," said Fawad Razaqzada, market analyst at City Index and FOREX.com.

World shares held just below recent record highs as the revival of U.S./Canada trade talks helped risk sentiment. Canada on Sunday said it had rescinded its digital services tax in a bid to advance trade negotiations, bowing to pressure from Trump. MKTS/GLOB

On the U.S. data front, investors awaited the ADP employment report due on Wednesday and non-farm payrolls report on Thursday, which could provide insights into the Fed's future path for interest rate cuts.

The focus remains on whether the data suggests a further slowdown in economic activity, which would allow the U.S. central bank to cut interest rates, Staunovo said.

Gold tends to gain appeal in a low-interest rate environment, as it offers no yield.

Spot silver XAG= rose 0.2% to $36.04, platinum XPT= firmed 0.6% to $1,346.71, while palladium XPD= was steady at $1,133.29.

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