July 8 (Reuters) - Gold prices eased on Monday, following a sharp fall in the previous session, as a strong U.S. jobs report tempered expectations of an aggressive interest rate cut by the Federal Reserve later this month.
FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,396.80 per ounce as of 0118 GMT. Gold fell more than 1% on Friday and also marked its first weekly decline in seven weeks.
* U.S. gold futures GCv1 were down 0.1% at $1,399.40 an ounce.
* Nonfarm payrolls increased by 224,000 jobs last month, the most in five months, the U.S. Labor Department reported on Friday. Expectations for a Fed rate cut narrowed with the market now pricing a 27 basis points easing this month, from 33 basis points prior to payrolls. 0#FF:
* The dollar index .DXY against basket of major currencies was relatively unchanged on Monday after hitting 97.443 on Friday, its highest level since June 19, as U.S. Treasury yields rose across the board. USD US/
* Asian shares slipped on Monday as investors wagered on a less aggressive policy easing in the United States, while the Turkish lira held near two-week lows after the country's president dismissed its central bank governor over the weekend. MKTS/GLOB
* Domestic gold prices in India jumped to a record on Friday following an unexpected increase in import duty in the country's budget, hitting demand and forcing dealers to offer the highest discount in nearly three years. GOL/AS
* China's gold reserves rose to $87.27 billion at the end of June from $79.83 billion at the end of May. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.18% to 796.97 tonnes on Friday from 798.44 tonnes on Wednesday. GOL/ETF
DATA AHEAD (GMT)
* 0600 Germany Industrial Output
MM
May
* Bank of Japan Governor Haruhiko Kuroda delivers speech at regional branch managers' quarterly meeting