Gold steadied on Monday as the dollar rally paused and European shares fell, but it remained near a three-month low after a U.S. jobs report boosted expectations that the Federal Reserve would raise interest rates soon.
Spot gold was up 0.1 percent at $1,168 an ounce. It fell 2.6 percent on Friday, its biggest daily loss since Oct. 1, 2013, and reached its lowest since Dec. 1 at $1,163.45 after the strong U.S. non-farm payrolls report.
U.S. gold for April delivery settled up $2.20 an ounce at $1,164.30.
"Data on Friday was so significantly higher than expected that the market started to think that the Fed will have to start changing their language at the next meeting," Citi analyst David Wilson said.
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"But we'll have to wait for the next comments from (the Chair of the Federal Reserve, Janet) Yellen, because one data point is not necessarily what makes policy."
Data showed that U.S. employers stepped up hiring in February and the jobless rate fell to its lowest since May 2008, sending Treasury yields higher.