Gold stays below $1,200

SINGAPORE, Dec 8 (Reuters):  Gold stayed below $1,200 per ounce Monday, retaining overnight losses as a robust US  nonfarm payrolls report boosted the dollar to a more than five-year high, denting bullion's appeal as a hedge.

Spot gold was steady at $1,194.40 an ounce by 0730 GMT, after losing 1.1 per cent on Friday when data showed US employers added the largest number of workers in nearly three years in November and wage gains picked up.

The dollar was trading close to its highest since March 2009 on the back of the strong jobs report.

Investors fear the strength in the economy could draw the Federal Reserve closer to raising interest rates and decrease demand for gold, a non-interest-bearing asset.