Gold prices held steady on early Monday,January 8, below 3-1/2-month highs hit last week, amid expectations of more U.S. interest rate hikes this year.
Spot gold was mostly unchanged at $1,322.73 an ounce at 0059 GMT. Last week, prices touched their highest since Sept. 15 at $1,325.86.
U.S. gold futures were also mostly unchanged at $1,322 an ounce. Spot gold rose for a fourth straight week last week.
The U.S. December non-farm payrolls report on Friday was weaker than expected. The dollar dipped briefly, then rose as investors reckoned the data would not deter the U.S. Federal Reserve from raising interest rates multiple times this year, though at a gradual pace.
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
China gold reserves were at 59.240 million fine troy ounces at end-Dec, unchanged vs end-Nov, the central bank said on Sunday.
Holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.14 percent to 834.86 tonnes on Friday from 836.04 tonnes on Thursday.
Hedge funds and money managers raised their net long positions in COMEX gold and copper contracts in the week to Jan. 2, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.
Physical gold demand across Asia remained subdued last week as prices rallied to a three-and-a-half-month high, keeping retail buyers away from the market.
