2021.07.0510:27:00UTC+00Gold Edges Higher As Dollar Dips After Jobs Report

Gold edged higher on Monday and the dollar remained on the back foot after a mixed U.S. jobs report helped ease investor concerns over an earlier-than-expected rate hike by the Federal Reserve.

Spot gold edged up 0.2 percent to $1,791.42 per ounce, after hitting its highest since June 18 at $1,794.86 on Friday. U.S. gold futures were up half a percent at $1,791.30. U.S. markets are closed today for the Independence Day holiday.

Data on Friday showed U.S. companies hired the most workers in 10 months in June.

However, unemployment ticked higher, the labor force participation remained unchanged and the pace of hourly earnings growth slowed, helping ease fears about the timing of U.S. interest rate hikes.

Higher interest rates translate into a reduced opportunity cost of holding bullion, which pays no interest.

Investors may get a deeper glimpse at the Fed's views on inflation when the minutes from the recent FOMC meeting will be released on Wednesday.