Gold edged lower on Tuesday as the dollar recovered and global shares rose, but uncertainty about the timing of a US interest rate increase kept bullion not far from a seven-week high above $1,200 an ounce. Bullion hit its highest since February 17 at $1,224.10 on Monday, supported by a weakening dollar after US nonfarm payrolls data fuelled expectations that the Federal Reserve could delay an anticipated rate rise this year.
US jobs posted the slowest growth in more than a year in March.
"Some of the shine has come off of the big rally over the Easter break on a rebounding US dollar," bullion broker Sharps Pixley's CEO Ross Norman said.
"Bulls are frustrated yet again to see rallies fade ... momentum buying is mostly seen as an opportunity to sell into."
Spot gold was down 0.2 percent at $1,211.50 an ounce by 1354 GMT, while US gold for June delivery slipped 0.6 percent to $1,211.30 an ounce.
The dollar rose 0.8 percent versus a basket of currencies, aided by higher Treasury yields. Equities also climbed, denting gold's appeal as insurance against risk.
A stronger greenback makes dollar-denominated bullion more expensive for holders of other currencies, while returns on US bonds are closely watched by the gold market, given that the metal pays no interest.
Gold is likely to continue to depend on movements in the dollar and expectations of higher US interest rates, ActivTrades chief analyst Carlo Alberto de Casa said.
"The next support levels are at $1,192 and then $1,182."
New York Fed President William Dudley said the timing of the US rate rise, which would be the first in nearly a decade, is unclear and policymakers must watch that the US economy's surprising recent weakness does not signal a more substantial slowdown.
Growth in the US services sector slowed in March to its lowest in three months, but the index of new export orders rose to the highest in more than two years.
Asian physical demand remains tepid at current levels.
The premium for physical gold on the Shanghai Gold Exchange was less than a dollar an ounce over the global spot benchmark, down from around $2-$3 last week as Chinese buyers returned from a long holiday weekend.
Spot silver fell 1.1 percent to $16.78 an ounce, while platinum lost 0.7 percent to $1,165.50 an ounce and palladium was up 0.6 percent at $771.75 an ounce.
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