PRECIOUS-Gold holds above $5,000 on softer dollar; investors brace for US data

By Pablo Sinha

Feb 9 (Reuters) - Spot gold prices climbed to hold above $5,000 per ounce on Monday, supported by a weaker dollar, as a slate of U.S. economic reports scheduled for this week brought investors' focus back to the trajectory of interest rates.

Spot gold XAU= rose 1.1% to $5,012.53 per ounce by 0948 GMT after a 4% climb on Friday. U.S. gold futures GCv1 for April delivery gained 1.1% to $5,033.70 per ounce.

"Gold reclaims its historical role as a neutral sovereign asset, which in my view explains the strong surge in demand for it, especially amid a clear decline in appetite for holding the US dollar as a safe haven," said Rania Gule, senior market analyst at XS.com.

Lower interest rates tend to support gold as they reduce the opportunity cost of holding the non-yielding asset.

San Francisco Federal Reserve Bank President Mary Daly said on Friday she thinks the U.S. labor market is in a "precarious" position, and that further interest-rate cuts may be needed.

Meanwhile, China's central bank extended its gold buying spree for a 15th month in January, data from the People's Bank of China showed on Saturday.

This "reflects a clear strategy aimed at diversifying reserves away from the US dollar and reducing exposure to geopolitical and financial risks associated with it," Gule added.

Spot silver XAG= climbed 4.3% to $81.32 per ounce after a near 10% gain in the previous session. It hit an all-time high of $121.64 on January 29.

"Silver is more of a risk asset than gold... when risk appetite is strong, you tend to see silver outperform gold," said Fawad Razaqzada, market analyst at City Index and FOREX.com.

Spot platinum XPT= was down 1.5% at $2,065.10 per ounce, while palladium XPD= lost 1.1% to $1,687.50.