Gold rose the most in two months as the dollar headed for the biggest drop in almost a year, reviving the metal’s appeal as an alternative investment after prices touched a 2014 low.
Silver jumped the most in 15 weeks.
The dollar fell as much as 0.9 percent against a basket of 10 currencies as uneven U.S. labor-market data fuels speculation on when the Federal Reserve will raise interest rates. On Oct. 3, the greenback reached a four-year high as gold slumped below $1,200 for the first time since Dec. 31.
“The dollar drifting lower is adding support to gold,” Ole Hansen, the head of commodity strategy at Saxo Bank A/S in Copenhagen, said in a telephone interview. “Almost all of gold’s weakness we’ve seen has been a strong-dollar move.”