Investing.com - Gold prices remained lower on Monday, as expectations for upcoming U.S. rate hikes lent support to the dollar despite last Friday's disappointing U.S. employment data.
Comex gold futures were down 0.12% at $1,320.60 a troy ounce by 08:25 a.m. ET (12:25 GMT), still within close distance of last week's four-month peak of $1,327.30.
The greenback found support after San Francisco Fed President John Williams said on Saturday that the Fed should raise interest rates three times this year given that economy will benefit from tax cuts.
The comments came a day after Cleveland Fed President Loretta Mester said she expects about four interest rate hikes this year, thanks to solid U.S. economic growth and low unemployment.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.32% at 92.04, the highest since December 29.
Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
The dollar had initially weakened after the U.S. Department of Labor reported on Friday that the economy added 148,000 jobs in December, disappointing expectations for an increase of 185,000. The unemployment rate remained unchanged at 4.1%, as expected.
Elsewhere on the Comex, silver futures declined 0.49% to $17.20 a troy ounce.