* U.S. payrolls data beats forecasts, boosts dollar
* Gold rebounds slightly after hitting 1-week low
* GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC (Updates prices, adds comment)
By Zandi Shabalala
LONDON, Aug 8 (Reuters) - Gold steadied after falling to a one-week low on Monday as downward momentum from stronger-than-expected U.S. jobs figures late last week lost steam, with concerns over negative global economic sentiment lending support.
The payrolls data on Friday reignited speculation that the Federal Reserve could press ahead with interest rate hikes later this year. gold XAU= was up 0.1 percent at $1,336.40 an ounce at 1419 GMT, after dipping to $1,329.55, the lowest since July 27. U.S. gold GCcv1 for December delivery edged 0.1 percent lower to $1,342.90 an ounce.
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
Fading expectations for an increase were the chief factor driving a 28 percent rise in gold prices earlier this year.
"The U.S. is not hiking rates as fast as we expected them to, and so the macro environment is still favourable to gold," Deutsche Bank (DE:DBKGn) mining analyst Frank Nganou said.
"At the moment, it's all about central banks and whether they stay dovish. Every bit of information from the U.S. will move gold."
Fuelled by the U.S. non-farm payrolls, U.S. stocks, European shares and the dollar rose on Monday. MKTS/GLOB USD/
There was a mix of short covering and bargain hunting in gold in Asian trading hours before sellers wrestled back control, MKS PAMP Group trader Sam Laughlin said in a note.
Speculators added net longs in gold futures for the first time in four weeks in the week to Aug. 2, though they remained below last month's highest level in more than two years. of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund (ETF), rose by 7.1 tonnes to 980.3 tonnes on Friday, its biggest one-day inflow since late June. GOL/ETF
"Gold remains overbought ... evidenced by large net long positions in COMEX and ETFs, and we feel is vulnerable to further downside in the short term," MKS said in a note.
Among other precious metals, silver XAG= was up 1 percent at $19.85 an ounce after hitting a near two-week low at $19.56. It fell 3 percent on Friday.
Hedge funds and money managers decreased their net long position in COMEX silver contracts for the first time in two months in the week to Aug. 2, taking it off the previous week's record high, data showed on Friday. XPT= gained 0.9 percent to $1,152.10, while palladium XPD= was up 0.4 percent at $696.47.
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http://reut.rs/1WAiOSC
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