Gold ticked higher but stayed within striking distance of a 5-1/2-year low on Monday, after solid US job gains in July suggested the Federal Reserve could raise interest rates as early as next month. US nonfarm payrolls increased 215,000 in July, less than the 223,000 rise that economists had expected, but still seen in line with a tightening labour market. Payrolls data for May and June was revised to show 14,000 more jobs created than previously reported.
Spot gold was up 0.3 percent at $1,096.10 an ounce by 0622 GMT, recovering from an early low of $1,089.40.
Gold managed to eke out marginal gains on Friday after the jobs data was released, with the smaller-than-forecast number spurring some hopes that the Fed could hike rates later than September.
A looming US rate rise, the first since 2006, had weighed on non-interest yielding gold, pulling more funds to the dollar. The greenback stayed close to its highest level since April against a basket of currencies. The metal fell for a seventh week in a row last week, its longest such retreat since 1999, having struggled to pull away from a 5-1/2-year trough of $1,077 reached during a late rout in July. US gold for December delivery gained 0.2 percent to $1,096 an ounce.