Gold ticked higher for a second straight session on Monday, after data showed U.S. jobs growth just missed expectations, assuring investors that the Federal Reserve will not be in a hurry to hike U.S. rates next month.

FUNDAMENTALS

Spot gold had climbed 0.2 percent to $1,189.84 an ounce by 0042 GMT, after gaining 0.3 percent on Friday. Data on Friday showed U.S. nonfarm payrolls increased 223,000 in April, lower than market expectations of 224,000.  March payrolls were revised to show only 85,000 jobs created, the smallest since June 2012.
The data burnished gold’s demand as a safe-haven, while also tempering views that a U.S. interest rate hike could come at the Fed’s next policy meet in June. However, other aspects of the jobs report provided mixed signals. The unemployment rate dropped to a near seven-year low, suggesting underlying strength in the economy at the start of the second quarter that could keep alive prospects for a Fed rate hike later this year, and capping gains in gold.
Investor sentiment remained bearish. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 1.45 percent to 728.33 tons on Friday, the sharpest single-day decline this year.
Hedge funds and money managers cut their bullish gold bet during the week ended May 5, U.S. Commodity Futures Trading Commission data showed on Friday.  For trading cues on Monday, investors will be watching how gold prices in China perform following the weekend move by the Chinese central bank to cut interest rates for the third time in six months.
Reaction to the policy move in equities and the foreign exchange markets will also be in focus. A robust stock market could dent demand for bullion.
PRICES AT 0042 GMT

COMEX gold and silver contracts show the  most active months
Source: http://in.reuters.com/