Gold slipped nearly 1 percent on Monday as investors adjusted positions after a short covering rally, fuelled by a softer-than-expected US jobs report, and as stronger equities and bearish sentiment continued to weigh on the metal. Despite a 3 percent jump on Friday, gold remained below a key $1,180-an-ounce level that could pressure the metal back to 4-1/2-year lows reached last week on a strong dollar and fears regarding an upcoming rate hike by the US Federal Reserve.
"The rally on Friday may well be overdone as investors mull over the US data and realise the jobs data actually wasn't all that bad," said Sam Laughlin, metals dealer at MKS Group. "We are looking towards resistance around $1,180-85 while support will be sitting around Friday's low print of $1,130." Spot gold fell as much as 0.9 percent to $1,168.10 before recovering slightly to trade down about $8 at $1,170.81 by 0724 GMT. It fell to $1,131.85 on Friday - its lowest since April 2010 - before recovering to post its biggest one-day gain in five months.
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