Gold under pressure on U.S. rate hike prospects

Gold prices were little changed early on Monday, after dipping from a one-month high last week on expectations of further interest rate hikes, with investor attention on more views from the U.S. Federal Reserve.

                              FUNDAMENTALS

* Spot gold was steady at $1,173.06 an ounce by 0047 GMT. The metal rose nearly two percent last week, its biggest weekly percentage rise since early November.

* U.S. gold futures were unchanged at $1,173.80 per ounce.

* The dollar index, which measures the greenback against a basket of currencies, edged 0.1 percent higher at 102.27.

* U.S. employment increased less than expected in December but a rebound in wages pointed to sustained labor market momentum that sets up the economy for stronger growth and further interest rate increases this year.

* Gold demand in Asia gathered some steam last week on wedding season purchases in India, with prices swinging to a premium there for the first time in over a month, and traders expecting demand to strengthen due to the upcoming Chinese New Year. 

 

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