Gold steadies near five-month peak

BENGALURU, Dec 10 (Reuters): Gold prices were steady on Monday, having touched a fresh five-month peak early in the session, as the dollar weakened after a soft US jobs report fuelled speculation that the Federal Reserve may stop raising interest rates sooner than expected.

Spot gold was steady at $1,247.99 per ounce, as of 0700 GMT, after hitting its highest since July 11 at $1,250.55 earlier in the session.

US gold futures rose 0.1 per cent to $1,254.4 per ounce.

Weak data points from the United States have been putting pressure on the dollar index which is proving to be positive for gold, said Ajay Kedia, director at Kedia Commodities in Mumbai, adding that: "we expect a resistance level of $1,270 before the upcoming Fed meet."

The dollar slid against the euro and the yen after data showed US non-farm payrolls increased by 155,000 jobs last month, below economists' median forecast of 200,000 jobs, and the wage increase was softer than expected.