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By Bloomberg

Gold held near a one-week high on speculation that investors have factored in a U.S. interest-rate increase, which may happen as early as next month.

Bullion should gain once uncertainty fades about the start and pace of rate rises, Commerzbank AG said in a report Monday. While gold dropped the past seven weeks in London, prices rose on Friday even as data showed an improving U.S. jobs market and backed the case for higher rates.

Gold reached a five-year low last month and investors are holding the least through bullion-backed funds since 2009 as prospects for higher borrowing costs helped strengthen the dollar. Rate increases reduce the metal’s allure because it doesn’t pay interest or give returns like other assets such as equities and bonds.

“Anything that can be priced, be it Asian seasonality, be it currency moves or be it a U.S. rate hike, has been,” Bernard Dahdah, an analyst at Natixis SA, said by phone from London. “Gold will probably be very flat until September, after which we could see prices head below $1,000. We don’t see a flash drop in prices unless the U.S surprises with the pace of rate hikes.”

Gold futures for December delivery were little changed at $1,095.30 an ounce at 7:24 a.m. on the Comex in New York. The contract reached $1,098.90 on Friday, the highest since July 31. Metal for immediate delivery added 0.1 percent to $1,095.10, according to Bloomberg generic pricing.

Gold advanced Friday as U.S. equities and a gauge of the dollar’s strength fell. U.S. employers added 215,000 jobs in July, while payroll gains in the previous two months were revised up, the Labor Department report showed. The Federal Reserve has kept rates near zero since 2008 to bolster economic growth.

Holdings in gold-backed exchange-traded products fell for the 16th time in 17 days, data compiled by Bloomberg show. Assets declined 2 metric tons to 1,511.8 tons as of Friday.

Silver for September delivery gained 0.2 percent to $14.855 an ounce. Platinum for October rose 0.8 percent to $970.20 an ounce. Palladium for September added 0.5 percent to $600.05 an ounce.