Gold prices fell in early trading on Monday, but remained near the highest level in more than a month hit in the previous session after weak U.S. data boosted the chances of the Federal Reserve cutting interest rates in September.
Update prices
Spot gold was down 0.2 percent at $2,386.58 an ounce by 0022 GMT, after hitting its highest since May 22 on Friday. Gold futures were down 0.2 percent at $2,393.80 an ounce.
Data on Friday showed unemployment hit a two-and-a-half-year high of 4.1 percent, indicating a slowing labor market.
Markets are pricing in a 78 percent chance of a September rate cut by the U.S. central bank, according to the CME FedWatch tool. Traders are also pricing in a second rate cut in December.
Lower interest rates reduce the opportunity cost of holding non-interest-bearing gold.
Among other precious metals, spot silver fell 0.2 percent to $31.15 an ounce, platinum fell 0.3 percent to $1,024 an ounce and palladium fell 0.8 percent to $1,017.78 an ounce.
