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By Anmol Choubey Gold prices rose 2% on Monday, hitting their highest level in two weeks, as weak U.S. economic data bolstered expectations for a Federal Reserve rate cut next month, while a softer dollar lent further support to bullion. Spot gold GOLD climbed 2% to $4,078.45 per ounce by 0956 GMT, hitting its highest since October 27. U.S. gold futures GOLD for December delivery rose 1.9% to $4,087.10 per ounce. The dollar index DXY fell 0.1%, making gold more affordable for overseas buyers. "There are concerns regarding the U.S. economy because of the weak data, and the main focus remains on the dollar index," said Jigar Trivedi, senior research analyst at Reliance Securities. Safe-haven buying has also increased due to persisting trade war and geopolitical tensions, aiding bullion, Trivedi added. Data last week showed the U.S. economy shed jobs in October, with losses in the government and retail sectors. Additionally, U.S. consumer sentiment fell to its lowest level in nearly 3-1/2 years in early November, weighed by worries over the economic fallout from the longest-ever government shutdown, a survey showed on Friday. Meanwhile, the U.S. Senate advanced a measure on Sunday to reopen the federal government and end the 40-day shutdown that sidelined federal workers. White House economic adviser Kevin Hassett warned in an interview aired on Sunday that U.S. economic growth in the fourth quarter could turn negative if the shutdown persists. Market participants now see a 65% chance of a Fed rate cut in December. Gold, which yields no interest, typically benefits from a low-rate environment and economic uncertainty. "While we maintain that gold could approach $5,000 within the next 12 months and silver $65, we are more cautious about calling for an immediate return to the highs," Saxo Bank said in a note. Elsewhere, spot silver XAGUSD1! rose 3.1% to $49.79 per ounce, reaching its highest since October 21, platinum PL1! rose 1.6% to $1,570.15 and palladium XPDUSD1! added 1.4% to $1,399.93.
