Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.03 percent to 688.98 tonnes on Monday, the first outflow in two weeks.
Gold was holding just below its highest in a week on Tuesday as investors bet last week’s sluggish US nonfarm payrolls data would deter the Federal Reserve from hiking rates this year.
Spot gold was little changed at $1,135.10 an ounce by 0033 GMT. The metal had climbed to a one-week high of $1,141.80 in the previous session, before closing down 0.2 percent on mild profit taking.
It is still largely holding on to Friday’s 2.2 percent jump, the biggest one-day rise since Jan. 15 following data that showed US employers slammed the brakes on hiring over the last two months. Nonfarm payrolls rose by only 142,000 last month, below economist expectations of 203,000.
Other data on Monday showed the pace of growth in the US services sector decelerated in September as new orders and business activity slowed, more signs of weakness in the economy.
The sluggishness in the US economy, along with weakness in China and volatility in financial markets, could prompt the Fed to hold rates, analysts have said.
Higher rates would increase the opportunity cost of holding gold, a non-interest-paying asset, while boosting the dollar.
Eric Rosengren still expects the Fed to raise interest rates this year despite what the head of the Boston Fed called a “weak” September jobs report, which could signal a more significant economic slowdown that delays the policy tightening.
Meanwhile, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.03 percent to 688.98 tonnes on Monday, the first outflow in two weeks.
Members of South Africa’s Association of Mineworkers and Construction Union will decide whether to strike at operations of gold companies at a mass meeting on Oct. 11, a spokesman said on Monday.
Among other precious metals, silver retained a near-8-percent gain from the precious two sessions. Palladium fell 1 percent, after hitting its highest since June in the previous session.