Gold edges down as dollar firms

LONDON, Jan 8 (Reuters): Gold prices inched down on Monday after the dollar firmed on expectations of further US interest rate hikes this year.

Spot gold was down 0.1 per cent at $1,317.60 an ounce at 0711 GMT. Last week, the metal touched its highest since September 15 at $1,325.86.

Spot gold posted its fourth consecutive weekly gain last week. US gold futures slipped 0.3 per cent on Monday at $1,318.80 an ounce.

"January is usually a good month for gold prices and should remain so on the anticipation of physical demand ahead of the Chinese New Year," said Stephen Innes, APAC head of trading, Oanda.

The US December non-farm payrolls report on Friday was weaker than expected, but investors reckoned the US Federal Reserve would still raise interest rates multiple times this year, although at a gradual pace.

The dollar's index against a basket of six major currencies rose 0.2 per cent to 92.155 on Monday, up from its January 2 low of 91.751, which was its weakest level since September 20.