On Monday, gold prices were flat after solid US jobs report boosted the prospect of aggressive interest rate hikes by the US Federal ReserveFederal Reserve, lifting the dollar and bond yields.
Spot gold was flat at $1,774. 09 per ounce, as of 0121 GMT, had dropped 1% in the previous session.
The US gold futures were steady at $1,790. The dollar index was at 106.77, the highest level since July 28. It was close to Friday's peak of 106.93. Benchmark US 10 year Treasury yields hovered near their highest level in more than two weeks, scaled on Friday.
The level of employment in the US rose above pre-pandemic levels in July, and the economy was in a recession because of the US job growth unexpectedly accelerated in July. Fed Governor Michelle Bowman said on Saturday that the Fed should look at more 75 basis-point interest rate hikes at coming meetings in order to bring inflation back to the central bank's goal. Rising US interest rates dulled the appeal of gold, even though it is seen as a hedge against inflation.
On Sunday, Chinese and Taiwanese warships played high seas cat and mouse before the end of four days of unprecedented Chinese military exercises launched in response to a visit to Taiwan by US House Speaker Nancy Pelosi.
On the physical side, gold premiums in China went up last week on safe-haven demand, driven by rising tensions with the United States over Taiwan, while higher domestic prices cooled buying activity in India.
The holdings of SPDR Gold Trust fell by 0.12% to 999.16 tonnes on Friday, the world's largest gold-backed exchange-traded fund.
Spot silver decreased by 0.2% to $19.83 per ounce, platinum fell 0.2% to $930, and palladium was unchanged at $2,125.