Gold hit a six-week high on Monday, buoyed by disappointing U.S. jobs data on Friday that
dimmed the prospects for an aggressive run of interest rate increases in the world's biggest economy.
U.S. job growth slowed in May and employment gains in the prior two months were not as strong as previously reported, suggesting the labor market was losing momentum.
Higher interest rates put pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion.
Spot gold had climbed to its highest level since April 21 adding to the 1.1 percent gain on Friday, before trading near the flatline at $1,279.42 per ounce.
"Gold has got a bit of a lift from payroll numbers from Friday which has carried through to today but there is also support from terrorist events," said ETF Securities commodities strategist
Nitesh Shah, referring to an attack in London at the weekend.