Gold edges down as risk assets gain

Gold inched lower on Monday as risk appetite picked up, while traders awaited further cues on the US central bank's monetary policy path with Federal Reserve chair Jerome Powell and a slew of Fed members' speeches due this week, reports Reuters.

Spot gold was down 0.3 per cent at $1,987.29 per ounce at 1152 GMT after rising above the key $2,000 level on Friday. US gold futures fell 0.2 per cent to $1,994.50.

A combination of Powell's speech last week, and weaker than expected US jobs data, raised expectations that the Fed will end the current hiking cycle, which has raised investors' risk appetite, said ActivTrades senior analyst Ricardo Evangelista.

Other assets - such as S&P 500 futures - are up, hinting at a diversion of flows from gold and hence a slight drop in bullion prices, added Evangelista.

World shares were heading for a sixth straight session of gains, helped by last week's bond rally.

Spot silver was unchanged at $23.2 per ounce, platinum fell 0.4 per cent to $933.45 and palladium gained 0.7 per cent to $1,126.97.