Gold futures were trading moderately higher in early hours on Monday, with the dollar’s dynamic taking a major role in the safe-haven asset direction.
On the Comex division of the New York Mercantile Exchange, gold futures were up 0.03 percent at $1.315.10 a troy ounce as of 6:50 GMT.
The yellow metal was able to close slightly higher on Friday, but remained under pressure due to an ongoing strengthening of the US dollar.
Dollar-denominated gold is sensitive to moves in the dollar. A stronger base currency makes gold more expensive for holders of foreign currency, damping interest for the safe-haven asset.
The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was up 0.07 percent at 92.48 by the time of this writing.
Ahead this week, investors will be looking ahead to updates on US producer price and consumer price indexes on Wednesday and Thursday, respectively.
Inflation is a key benchmark for the Federal Open Market Committee and its proper development is crucial for the future of monetary policy.
On the data front, the Labor Department said nonfarm payrolls for April missed expectations at 164,000 jobs, against an expected job creation of 189,000. Average hourly earnings were also below forecast with a modest increase of 0.1 percent.
This report had little impact on monetary policy expectation. Most traders believe the Federal Reserve will remain on its path of normalization, which is clearly a positive thing for the dollar.