Gold eases as firm dollar counters bets for Fed pause

Gold slipped on Monday as the dollar firmed after strong US payrolls data last week, offsetting some of the support for zero-yield bullion from bets that the Federal Reserve may pause rate hikes in June, reports Reuters.

Spot gold fell 0.4 per cent to $1,940.39 per ounce by 1247 GMT, close to its lowest level since May 30 and trading in a $12 range.

US gold futures fell 0.8 per cent to $1,954.60.

"Gold bulls' shoulders slumped after yet another red-hot headline non-farm payroll print fuelled a rebound in the dollar," said Han Tan, chief market analyst at Exinity.

Gold dropped more than 1.0 per cent on Friday after data showed the US economy added 339,000 jobs last month, above estimates of 190,000.

Meanwhile the dollar index was up 0.3 per cent on Monday, making greenback-priced bullion less affordable for overseas buyers.

Gold also weakened on safe-haven demand reducing after US President Joe Biden pushed the debt ceiling deal through both the House and Senate, SP Angel analysts said in a note.