Investing.com - Gold prices turned higher on Monday, but gains were expected to remain limited as Friday's strong U.S. employment data continued to support demand for the greenback.
Comex gold futures were up 0.15% at $1,339.20 a troy ounce by 08:15 a.m. ET (12:15 GMT), just off Friday's nearly two-week lows of $1,330.10.
The greenback was boosted after the U.S. Department of Labor reported on Friday that the economy added 200,000 jobs in January, beating expectations for a 184,000 gain. The unemployment rate remained unchanged at 4.1% this month, in line with expectations.
The strong wage growth data fueled inflation expectations, and underlined the case for the Federal Reserve to raise interest rates at a faster pace this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 89.13.
Separately, Treasury yields continued to climb, with the benchmark 10-year note hovering near more than four years.
Recent chatter that the world's leading central banks will start tightening monetary policy faster than previously thought has sparked a global bond market selloff this year, with yields in the U.S., Europe and Asia all spiking higher.
Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
Elsewhere on the Comex, silver futures gained 0.51% to $17.79 a troy ounce.