Gold prices ticked up amid a softer dollar on Monday, but lacked impetus to push higher weighed by expectations of an increase in interest rates in the United States. Spot gold was up 0.2 percent at $1,249.90 an ounce, as of 0751 GMT, after hitting its lowest since July 26 at $1,243.71 last week.
US gold futures were 0.3 percent higher at $1,251.70. The dollar gave up some early gains on Monday, but losses were limited as stronger-than-expected US jobs data and expectations of higher interest rates in the United States provided underlying support.
"Expectations this week are that bullion will hold a narrow range into Wednesday's FOMC rates decision, while following Friday's stronger than expected US jobs data we see a 90 percent chance that interest rates will be raised, with the potential that gold may extend recent weakness toward $1,200" MKS PAMP trader Sam Laughlin said in a note. Meanwhile, newly launched bitcoin futures on the Chicago-based CBOE Global Markets exchange and shot above $18,000 on Monday, having opened at $15,460.
"It seems that the bitcoin mania has swept a lot of investors. However, the recent spike in volatility of bitcoin futures might lure investors away from the cryptocurrency and into gold," Sharma said. Spot gold still targets $1,239 per ounce, Reuters technicals analyst Wang Tao said.
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