Gold prices regained some ground on Monday but a firmer dollar and concerns that the U.S. Federal Reserve might keep hiking interest rates kept bullion below the $1,900-an-ounce level.
Spot gold was up 0.5% at $1,875.20 per ounce as of 0748 GMT, after hitting its lowest level since Jan. 6. U.S. gold futures rose 0.6% to $1,887.60.
Bullion prices had dropped more than 2% on Friday after data showed U.S. job growth accelerated sharply last month and the unemployment rate hit a more than 53-1/2-year low of 3.4%.
“Markets were initially looking for the first (rate) cut to come in Q3 (post-FOMC but prior to non-farm payrolls release), but expectations for the first cut have now been pushed back to November-December,” said OCBC FX strategist Christopher Wong.
“Markets are now expecting the Fed to keep peak rate (still around 5%) on hold for longer. This could depress gold’s appeal in the interim.”
Those bets helped the dollar index rise 0.2%, adding pressure on gold by raising its cost for buyers holding other currencies.
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