Gold rose on Monday as the U.S. jobs report provided signs the Federal Reserve would raise its interest rates later this year, ahead of key data and events this week.
The precious metal hit a high of $1268.48 an ounce, slightly below the 13-month high of $1279.45 hit on Friday, while currently trading around $1266.58.
The U.S. non-farm payrolls report showed that American employers created 242,000 jobs last month, exceeding forecasts of 190,000-job gain.
However, average hourly earnings dropped 0.1 percent in February, the first fall in more than a year, suggesting the Fed could delay its next interest rate hike.
Most Asian shares rose a two-month high on Monday on optimism after the NFP and after the rise in oil prices.
The dollar index, which tracks the green currency’s movements versus a basket of major currencies, rose for the first time in four sessions.
The green currency soared to 97.56 from the session’s opening at 97.34, after ending last week on a loss.
The dollar may take advantage of any change in monetary policy by the ECB this week, where analysts predict a possible expansion in stimulus and further drop in deposit rate.
In addition, key economic data from China, including trade and inflation are likely to shape the general sentiment in the market this week.
The yellow metal managed to lock its second straight weekly gain the previous week, resuming its rally targeting $1300 levels.
Later in the day, Federal Reserve Governor Lael Brainard and Federal Reserve Governor Stanley Fischer will speak.
