* Technical support at $1,315, resistance at $1,330
* Silver hits over two-week high (Updates prices)
By Pratima Desai and Sethuraman N R
LONDON, Sept 5 (Reuters) - Gold held steady on Monday, close to a one-week high touched in the previous session, as the dollar dipped on receding expectations of an imminent U.S. interest rate rise but the yellow metal's gains were capped by stronger global stocks.
Spot gold XAU= was up 0.1 percent at $1,326.33 an ounce by 1851 GMT. The precious metal hit a one-week high of $1,328.73 on Friday after data showed U.S. employment growth slowed more than expected in August after two straight months of robust gains. gold futures GCcv1 were up 0.3 percent at $1,330.7.
Cooling U.S. rate hike expectations helped world shares notch up solid gains on Monday, though they came off highs as investors concluded an oil market pact between Saudi Arabia and Russia lacked substance. MKTS/GLOB
"What we're seeing is a reversal of expectations that U.S. interest rates would rise in September," said ICBC Standard Bank analyst Tom Kendall. "The idea that monetary policy is going to stay super easy is good for gold."
The U.S. Federal Reserve's next policy meeting takes place Sept. 20-21 and a decision to keep policy on hold could mean a lower U.S. currency, making dollar-denominated gold cheaper and more attractive for non-U.S. buyers. FRX/
The U.S. Labor Day holiday is expected to keep volumes subdued on Monday, but new U.S. data releases and any speeches from Fed officials will be watched closely for clues to the timing of any rate moves.
JPMorgan (NYSE:JPM) analysts expect prices to average $1,425 an ounce in the first half of next year.
"Our bullish base case remains anchored to the fact that economic growth largely remains uninspiring while rates still remain very low or negative (especially on a real basis), something a 25 basis point rate hike in the U.S. in September or December will not wholly reverse," JPMorgan said in a note.
The dollar index, which measures the greenback against a basket of six major currencies .DXY , stood at 95.762, down about 0.1 percent.
On technicals, analysts see strong support at $1,315, a 23.6 percent retracement of the August to September fall, with resistance at $1,330. and traders are also waiting to see whether physical demand picks up in India over the coming weeks because of festivals and the wedding season.
Spot silver XAG= gained 0.4 percent to $19.49 an ounce, having earlier touched a session high of $19.56, a peak since Aug. 19.
Platinum XPT= rose 1 percent to $1,068.80, while palladium XPD= added 0.4 percent to $678.50. (Additional reporting By Vijaykumar Vedala in Bengaluru; Editing by David Goodman)