Gold prices rose on Monday to their highest in more than five weeks as the dollar weakened, while jitters over the largest U.S. bank failure since the 2008 financial crisis drove investors to the safe-haven asset.

 

FUNDAMENTALS

* Spot gold was up 0.5% at $1,877.30 per ounce, as of 0051 GMT, after hitting its highest since Feb. 3 earlier in the session at $1,893.96. U.S. gold futures gained 0.8% to $1,882.10.

* The dollar index was down 0.4%, making bullion cheaper for buyers holding other currencies.

* U.S. officials stepped in to stem financial fallout from the failure of tech startup-focused Silicon Valley Bank , saying that all customers would have access to their deposits starting on Monday.

* California banking regulators closed Silicon Valley Bank on Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of its assets.

* State regulators closed New York-based Signature Bank on Sunday, just two days after California authorities shuttered Silicon Valley Bank.

* Data on Friday showed the U.S. economy added jobs at a brisk clip in February, but monthly wage growth slowed and the unemployment rate rose, pointing to some labour market loosening and prompting financial markets to dial back expectations that the Federal Reserve would raise interest rates by half a percentage point this month.

* Gold is considered a hedge against economic uncertainties, and tends to gain on expectations of lower interest rates which reduce the opportunity cost of holding non-yielding bullion.

* Spot silver added 0.6% at $20.63 per ounce, platinum was 0.3% higher at $961.87 and palladium rose 0.5% to $1,385.56.

Euro group finance ministers meet in Brussels (Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu Sahu)