(Bloomberg) -- Gold rose as traders assessed mixed signals on the US economy while awaiting a slew of Federal Reserve speakers for clues about the outlook for interest rates.

The precious metal climbed as much as 1.3% on Monday, following its first back-to-back weekly losses since February. Trading volumes were lower than average as UK and Japanese markets shut for a holiday. 

A softer-than expected US jobs print last week added to evidence the economy is gradually slowing, easing fears that markets are headed for a painful rut marked by high inflation and sluggish growth. Still, inflation remains sticky, which means that there’s a limit on what the US central bank can do and that bond yields may remain in their recent ranges.

Swap traders are now cautiously upping their bets for policy easing this year, and gold investors are upping their bids on views that inflation may remain higher for longer.

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Gold has advanced more than 12% this year despite the elevated inflationary environment and uncertainty over when the US central bank will reduce rates. A record-breaking rally saw the metal hit a succession of all-time highs in April, with those gains linked to strong central-bank purchases, demand from Asian markets and haven buying amid conflicts in Ukraine and the Middle East.

Bullion became less attractive in recent weeks on signs that the Middle East is easing away from a potential full-blown war. 

However, Israel’s military has told civilians to move out of parts of Rafah, a possible prelude to a long-expected attack on the Gazan city. The move comes after cease-fire talks between Hamas and Israel in Cairo over the weekend stalled, the main sticking point being the Iran-backed militant group’s insistence that any truce is permanent. 

Spot gold climbed 1% to $2,324.97 an ounce at 10:26 a.m. in New York. The Bloomberg Dollar Spot Index edged lower. Silver, palladium and platinum all gained.

--With assistance from Sybilla Gross.

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