Investing.com - Gold prices rose on Monday after bargain hunters viewed the commodity as a nice buy.
Better-than-expected jobs numbers and a Standard and Poor's decision to revise its U.S. outlook strengthened the dollar, which trades inversely with gold, though bottom fishing pushed up the yellow metal into positive territory.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.16% at USD1,385.25 a troy ounce in U.S. trading on Monday, up from a session low of USD1,375.35 and down from a high of USD1,387.65 a troy ounce.
Gold futures were likely to test support USD1,375.35 a troy ounce, the earlier low, and resistance at USD1,423.25, Thursday's high.
Standard & Poor’s earlier revised its long-term outlook on the U.S. credit rating to stable from negative.
The agency affirmed the country's AA+/A-1+ rating.
"The stable outlook indicates our appraisal that some of the downside risks to our ‘AA+’ rating on the U.S. have receded to the point that the likelihood that we will lower the rating within the next two years is less than one in three," Standard and Poor's said.
"We do not see material risks to our favorable view of the flexibility and efficacy of U.S. monetary policy. We believe the U.S. economic performance will match or exceed its peers’ in the coming years. We forecast that the external position of the U.S. on a flow basis will not deteriorate."
The news boosted expectations for the Federal Reserve to begin scaling back stimulus measures soon now that the economy appears to be improving.
Stimulus measures, such as the Fed's USD85 billion monthly bond-buying program, weaken the dollar to spur recovery, and have sent gold rising over the past few years.
The dollar continued to see support from Friday's jobs data, though gold rebounded after plunging on the news.
The Bureau of Labor Statistics said the U.S. economy added 175,000 jobs in May, beating expectations for an increase of 170,000, after 149,000 jobs were created the previous month.
The headline U.S. unemployment rate ticked up to 7.6% last month, from 7.5% in April as more individuals entered the labor market and began fresh job searches.
Elsewhere on the Comex, silver for July delivery was up 0.87% at USD21.932 a troy ounce, while copper for July delivery was down 1.08% and trading at USD3.233 a pound.