Gold rose modestly on Monday, a day after U.S. jobs data matched expectations, while a rally in stocks curbed the metal's appeal as an investment hedge.
With no major economic data scheduled for Monday, markets were eyeing investment and consumer demand for further cues.
Chart: Precious Metals
Spot gold edged up 0.1 percent to around $1,254 an ounce. It has stabilized after falling to a four-month low of $1,240.61 early last week. U.S. gold futures settled up $1.40 at $1,253.90 an ounce.
Asian stocks touched their highest levels in nearly three years on Monday, basking in the glow of a record close on Wall Street after bright U.S. jobs data pointed to improving economic momentum.
Friday data showed that U.S. employment returned to its pre-recession peak in May, with a solid pace of hiring that offered confirmation the economy has snapped back from a winter slump.
Gold, often seen as an investment hedge, has a negative co-relation with equities and the dollar, both of which have been bolstered by the U.S. jobs data. Hedge funds and money managers cut their bullish bets in gold futures and options in the week to June 3 to their lowest level since mid-January, according to data from the Commodity Futures Trading Commission on Friday.
--By Reuters. For more information on precious metal prices, please click here.