LONDON: Gold prices held above the key $1,700 per ounce level on Monday, as hopes that the Federal Reserve might slow the pace of rate increases after mixed US jobs data helped offset pressure from a robust dollar.

Spot gold was up about 0.1% at $1,712.89 per ounce by 1302 GMT. US gold futures rose 0.1% to $1,724.10.

However, trading is expected to be thin with most US markets closed for Labour Day holiday.

Gold had its best day in nearly a month on Friday after US data showed moderate wage growth in August and a rise in the unemployment rate to 3.7% suggested the labour market was starting to loosen.

“Expectations around future Fed rate hikes have softened slightly but the jobs report will have to be paired with a good inflation reading to have any material impact,” said Craig Erlam, senior market analyst at OANDA.

“We may see some support for gold above $1,700 for now but with the dollar so favoured and central banks not easing off the brake, further downside pressure may still come and a break below $1,680 looks very possible.”