Gold held steady early on Tuesday from the prior session as the dollar weakened on expectations that the U.S. Federal Reserve will not raise rates in September, but the yellow metal’s gains were limited by stronger equity markets. Spot gold was slightly up at $1,327.46 (£995.66) per ounce by 0409 GMT.
The metal rose 0.1 per cent on Monday. U.S. gold futures were up 0.4 per cent at $1,331.40 (£998.76).
The fact that gold did not move much despite disappointing U.S. non-farm payroll numbers reflects the extensive level of speculative position in the gold markets either through futures or exchange traded funds, said Dominic Schnider of UBS Wealth Management in Hong Kong.