Gold rose on Monday as the dollar slid after a weaker-than-expected US jobs data trimmed expectations of a Federal Reserve rate hike in September. US employment growth slowed more than expected in August after two straight months of robust gains and wages were tepid. "The disappointment in the nonfarm payrolls data has been translated into optimism for gold prices at the moment. We can expect prices to further rebound to $1,350 in a short-term," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
Spot gold was up about 0.2 percent at $1,326.83 per ounce by 0652 GMT. The metal rose as much as over 1 percent on Friday. US gold futures were up 0.3 percent at $1,330.50. "Gold should continue to see interest support following Friday's jobs data as the chances of an interest rate rise in September pull back," MKS PAMP Group precious metals trader Sam Laughlin said in a note.
"The support broadly sits around $1,315 - $1,320, while bulls will be looking for a break above $1,330," Laughlin said, adding that there was good buying interest from Japan on Monday. Trading on Monday is expected to be quiet with the US out for the Labour Day holiday. Spot gold may retrace to a support at $1,315 per ounce, as it failed to break a resistance at $1,330, according to Reuters technical analyst Wang Tao. "Longs (positions) have been suffering from price correction and would be quite hard for them to sustain when prices are volatile. Speculators have to cut losses somehow," Wing Fung analyst To said.
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