PRECIOUS - Gold Gains Over 1% as Soft US jobs Data Lifts Fed Rate-Cut Bets

GOLD - May 9 (Reuters) - Gold prices climbed over 1% on Thursday after fresh Labor Department data indicated that the number of Americans filing new unemployment claims rose more than expected last week, buttressing bets of a rate cut by the Federal Reserve this year.

Spot gold XAU= rose 1.14% to $2,335.04 per ounce by 1835 GMT. U.S. gold futures GCcv1 for June delivery settled 0.8% higher, at $2,340.3 per ounce.

Initial claims for state unemployment benefits increased 22,000 to a seasonally adjusted 231,000 for the week ended May 4, the Labor Department reported on Thursday, compared to 215,000 claims that economists polled by Reuters had forecast in the latest week.

The dollar =USD slipped about 0.3% against its rivals to $105.27 after the jobs report, making gold less expensive for other currency holders. 

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"What we're seeing is continued impact from the expectations for Fed rate cuts, or when those rate cuts may occur," said David Meger, director of alternative investments and trading at High Ridge Futures.

The latest data indicates a slight weakening in the jobs market, bolstering expectations that the Fed's interest-rate cuts may happen sooner than previously expected, which supports markets like gold and silver, he said.

Lower interest rates reduce the opportunity cost of holding bullion. Traders are currently pricing in about a 67% chance of a Fed rate cut in September, according to the CME's FedWatch Tool.

"The miss in the U.S. jobs data... gave gold some strength here, and some safety buying this morning," said Bob Haberkorn, senior market strategist at RJO Futures.

Looking ahead, investor attention will shift to consumer price index data scheduled to be released next week.

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Spot silver XAG= climbed 3.09%, to $28.19 per ounce, and spot platinum XPT= gained 1.11%, to $982.56 per ounce. Spot Palladium XPD= rose 1.8%, to $968.48 per ounce.

By Kavya Balaraman and Rahul Paswan

(Reporting by Kavya Balaraman and Rahul Paswan in Bengaluru, Editing by Franklin Paul, Ravi Prakash Kumar and Pooja Desai)