Investing.com - Gold prices turned lower on Monday, as market sentiment remained supported by expectations for a less aggressive rate hike policy by the Federal Reserve.
Comex gold futures were down 0.52% at $1,317.1 a troy ounce by 08:05 a.m. ET (12:05 GMT).
The dollar initially strengthened after the Labor Department reported on Friday that the U.S. economy added 313,000 jobs last month, beating economists’ forecasts of 200,000. It was the largest monthly increase in one-and-a-half years.
However the report also showed that average hourly earnings rose by just 0.1% in February for an annual rate of 2.6%, down from 2.8% in January.
The slowdown in wage growth dampened expectations for four rate hikes by the Federal Reserve this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 90.13, not far from Friday's one-week highs of 90.36.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.Market sentiment also improved after the White House said late last week that key U.S. trading partners Canada and Mexico would be exempt from its highly criticized tariffs on steel and aluminum imports.
Elsewhere on the Comex, silver futures declined 0.89% to $16.46 a troy ounce.
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