* Yellen to address event on Monday, last time before media
blackout ahead of June policy meeting
* Gold jumped 2.8 pct on Friday, biggest one-day gain since
Feb. 11
(Updates prices)
By Vijaykumar Vedala
BENGALURU, June 6 (Reuters) - Gold touched a two-week high
on Monday before inching lower slightly, following its biggest
one-day gain in nearly four months in the previous session after
lower-than-expected U.S. employment data cut the chance of a
near-term U.S. rate hike.
Bullion, which has gained about 17 percent so far this year,
has been under pressure over the past few weeks as comments from
senior U.S. central bank officials, including chief Janet
Yellen, boosted expectations of an imminent interest rate rise
that would be bearish for non-interest bearing gold.
The safe haven asset got a breather on Friday as data showed
the U.S. economy created the fewest number of jobs in more than
5-1/2 years in May, pushing the yellow metal about 2.8 percent
higher in its biggest one-day percentage gain since Feb. 11.
Spot gold XAU= was down 0.3 percent to $1,240.80 per ounce
by 0646 GMT. It reached a high of $1,248.40, its best since May
24. U.S. gold GCcv1 was little changed at $1,243.20.
"The nonfarm payroll figures from last Friday still have
some kind of a ripple effect on gold prices but the margin of
effect is diminishing and because of that $1,250 should be the
immediate resistance level today," said Mark To, head of
research at Hong Kong's Wing Fung Financial Group.
At an event on Monday in Philadelphia, Yellen gets her last
chance to offer insight into Fed thinking before a media
blackout takes effect ahead of the June 14-15 monetary policy
meeting.
Wall Street's top banks unanimously expect the Fed to leave
interest rates unchanged this month, a Reuters poll showed, with
bank economists pointing to a weakening U.S. employment scene
and Britain's pending vote on remaining in the European Union.
"Although prices could still work a bit higher from here
over the course of the month, we think values will be hard
pressed to push above the $1,275 range over the course of June,"
said INTL FCStone analyst Edward Meir.
"On the downside, another retest of $1,190 cannot be ruled
out, especially if the dollar stabilizes on the back of stronger
U.S. macro numbers."
The dollar languished near three-week lows against a basket
of major currencies on Monday. USD/
Hedge funds and money managers reduced their bullish
position in COMEX gold contracts in the week to May 31,
government data showed.
Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.71 percent to 881.44
tonnes on Friday, the highest since October, 2013. GOL/ETF
Among other precious metals, spot silver XAG= fell 0.1
percent to $16.38 per ounce.