Gold climbed 1% Monday to hover near a seven-week high, supported by a weaker dollar, expectations of interest rate cuts and safe-haven buying due to geopolitical tensions, while silver gained but held below Friday’s record high.

Spot gold gained 0.9% to $4,343.96 an ounce by 1145 GMT, after rising over 1% earlier in the session. Bullion hit its highest since October 21 on Friday.

U.S. gold futures rose 1.1% to $4,374.40 an ounce.

The dollar hovered near a two-month low reached last week, making greenback-priced gold more affordable for overseas buyers, while benchmark 10-year U.S. Treasury yields edged lower.

"Stronger demand from investors and three months of solid central bank demand, (as well as) investors starting to anticipate even lower rates in 2026," are all supporting gold, said UBS analyst Giovanni Staunovo. The U.S. Federal Reserve last week delivered a 25-basis-point rate cut in a divided vote, with further easing dependent on the labor market and inflation levels.

Markets are currently pricing in two U.S. rate cuts next year, with investors eyeing this week's U.S. non-farm payrolls report for further clues on monetary policy.

Non-yielding assets, such as gold, typically benefit in a lower interest rate environment.

On the geopolitical front, Russia's central bank said on Friday that plans by the European Union to use Russian assets to extend a loan to Ukraine were illegal and that it reserved the right to employ all available means to protect its interests.

Spot silver rose 2.8% to $63.73 per ounce. It hit a record high of $64.65 on Friday before closing sharply lower.

The metal has gained 120% this year, buoyed by tightening supplies and its inclusion in the U.S. critical minerals list.

"Silver benefits from the same factors supporting investment demand for gold (i.e. lower rates), but also should benefit from stronger industrial demand, due to the monetary and fiscal stimulus measures," Staunovo said.

Spot platinum rose 1% to $1,762.76, while palladium gained 2% to $1,524.68 per ounce.