SINGAPORE: Gold steadied in a tight range on Monday, paring initial gains after a firmer dollar offset support from renewed fears over the economic hit from the Covid-19 pandemic.
Spot gold was steady at $1,931.91 per ounce by 0742 GMT, after hitting a one-week low of $1,916.24 on Friday. US markets are shut for the Labour Day holiday on Monday.
US gold futures rose 0.1% to $1,936.20.
The dollar index rose 0.2% against its rivals, making gold expensive for holders of other currencies.
The dollar's trend is the "big wall of risk" to gold right now, said Stephen Innes, chief market strategist at AxiCorp.
"The general theme from last week's US jobs report showed that the recovery is continuing to slow... The lower for longer interest rates narrative continues to chime well for the gold bulls."
Spot gold may bounce to $1,949, as it has cleared a resistance at $1,936 per ounce, said Reuters technical analyst Wang Tao.
Elsewhere, silver was steady at $26.87 per ounce, platinum rose 0.8% to $901.89 and palladium climbed 0.5% to $2,308.32.
Focus will now be on the European Central Bank's policy decision on Thursday.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
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