Gold edged lower as the euro eased on Monday but a possible delay in the U.S. Federal Reserve's decision to taper off its bond-buying program could boost the metal's safe-haven appeal.
Bullion, which has benefited from central bank liquidity, reversed heavy losses last week and gained nearly 2 percent on weaker-than-expected U.S. nonfarm payrolls.
(Read more: Why bad news for workers is great news for gold)
Gold fell 0.2 percent to $1,388.09 an ounce by 0352 GMT. It slipped to $1,362.55 on Friday, its weakest since August 22, before rallying after data showed U.S. employers hired fewer workers than expected in August.
"Even as recently as last week, we heard diverging views on the tapering schedule from Fed governors themselves, making it hard to know what the central bank will ultimately decide to do," said Edward Meir, an analyst at INTL FC Stone.
"This confusion will likely prevent gold from weakening substantially over the course of this week, but we suspect that the selling should intensify after the Fed meeting is out of the way and assuming we do indeed get a modest amount of tapering."