(Updates prices)
* Spot prices recover further from last week's 10-week low
* Gold specs cut net long positions in week to April 2
* SPDR gold holdings fell about 3 percent last week
* Platinum hits its highest since May 2018 at $914.74/ozBy Sumita LayekApril 8 (Reuters) - Gold prices rose to a more than aone-week peak on Monday as the dollar slipped on slow U.S. wagegrowth last month and a rally in equities stalled, boostingbullion's appeal.Spot gold gained 0.5 percent to $1,297.91 per ounceby 1151 GMT, having earlier touched its highest since March 29at $1,298.24.
U.S. gold futures were up 0.4 percent at $1,301.6 anounce. Spot prices slipped to a 10-week low last week at$1,280.59 on the back of a firmer dollar.
"The market is just getting a little bit of confidence backafter once again failing to break lower last week," said SaxoBank analyst Ole Hansen.
"We've got a weaker dollar, China buying another chunk ofgold last month continues to show physical underlying demand,and renewed fighting in Libya is just raising the geopoliticaltemperature," Hansen said, adding gold was once againpotentially challenging the $1,300 level. A rally in stocks that has capped gold's gains recentlypaused, while the dollar was down 0.2 percent against keyrivals, making bullion cheaper for holders of other currencies.Data on Friday showed employment growth in the U.S.accelerated from a 17-month low in March, assuaging fears of anabrupt slowdown in economic activity.However, a moderation in wage gains supported the FederalReserve's decision to suspend further interest rate rises thisyear.China raised its gold reserves by 0.6 percent to 60.62million ounces by end-March, central bank data showed. "Prices at around $1,280, the lowest seen so far this year(for gold), appear to be generating buying interest on themarket and preventing prices from sliding any further,"Commerzbank said in a note."The technically important 100-day moving average held firmlate last week, as it did in early March, thereby lendingsupport to the price."Holdings in the world's largest gold-backed exchange-tradedfund, SPDR Gold Trust , fell as much as 3 percent in theprevious week, its biggest weekly percentage decline sinceend-November 2016. Speculators slashed their bullish bets in COMEX gold in theweek to April 2, data showed on Friday. Among other precious metals, spot platinum was up 1.9percent at $911.64 an ounce, after touching a more than 10-monthhigh of $914.74 earlier in the session."Some potential mining unrest in South Africa on wagenegotiations is dragging on and has provided the fundamentalbackdrop," Saxo Bank's Hansen said.
Palladium rose 0.4 percent to $1,375, while silver gained 0.5 percent to $15.16. (Reporting by Sumita Layek in Bengaluru; editing by David Evansand Jan Harvey)
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