Investing.com - Gold prices eased in Asia on Monday on continued dollar strength following upbeat U.S. jobs data last week.
On the Comex division of the New York Mercantile Exchange, Goldfor December delivery traded at $1.188.90 a troy ounce, down 0.34%. Last week it hit a session low of $1,190.30 a troy ounce on Friday, a level not seen since December 31.
In a report on Friday, the Department of Labor said that the U.S. economy added 248,000 jobs in September, well ahead of forecast for jobs growth of 215,000. The unemployment rate ticked down from 6.0% to 5.9%, the lowest level since July 2008.
The upbeat data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner than markets are expecting.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, rallied 1.23% on Friday to close at 86.79, a level last seen in June 2010, capping its twelfth consecutive weekly gain.
The index was up 0.04% to 86.82 on Monday.
A stronger dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
In the coming week, investors will be looking ahead to Wednesday’s Federal Reserve meeting minutes for further indications on the future possible direction of U.S. monetary policy.
Also on the Comex, silver for December delivery rose 0.23% to $16.865 a troy ounce.
Elsewhere in metals trading, Copper for December delivery was up 0.19% to $3.005 a pound by close of trade. Prices hit a six-month low of $2.985 on Thursday.