Gold edged up on Monday, clawing back some lost ground after posting its biggest one-day loss in two months in the previous session as a softer tone to the dollar took some pressure off the metal.
Gold fell 1.2 percent on Friday after stronger than expected U.S. payrolls data shored up expectations that a pick-up in inflation will spur further U.S. interest rate hikes this year, boosting the U.S. currency, in which it is priced.
Having rallied in the wake of the data, the dollar rose 0.3 percent against the euro on Monday.
"This morning the greenback is weakening again, and this is supporting the recovery of the (gold) price after Friday's fall, which was mostly due to growing expectations for a hawkish Fed
in 2018," ActivTrades' chief analyst Carlo Alberto de Casa said.
Stock markets were routed around the globe on Monday and bond yields rose as resurgent U.S. inflation raised the possibility central banks would tighten policy more aggressively than had been expected.