Gold eyes $1,800 as dollar pauses

Gold prices inched higher on Monday as a softer dollar and lower bond yields amid a mixed bag of US labor data allayed investor concerns about a faster policy tightening, helping the metal rise toward the $1,800 level once again.

Spot gold was up 0.2 percent at $1,790.50 per ounce, after hitting its highest since June 18 at $1,794.86 on Friday. Most US markets were closed on Monday for the Independence Day holiday.

The dollar has given up some of its recent strength, and gold is “currently holding on to some of Friday’s gains, once again challenging resistance ahead of $1,800,” said Saxo Bank analyst Ole Hansen.

At the same time, Friday’s “not too hot” jobs report “has further reduced the risk of any action by the FOMC sooner,” Hansen added.