• Gold prices edged up in a technical rebound on Monday after one-month highs hit last week were undercut by the prospects of more interest rate hikes from the U.S. Federal Reserve.
Spot gold edged 0.2 percent higher to $1,174.91 an ounce by 0332 GMT. Gold gained nearly two percent last week, its biggest weekly rise since early November, although it fell back on Friday as Fed officials commented on data that pointed to an improving U.S. economy.
"Some kind of rebound in gold prices is still in place," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
"However, the impact of monetary police changes like rising U.S. interest rates will be felt gradually and the quick rebound in gold price should be finished."
• Spot gold is still up nearly 5 percent from mid-December after touching 10-month lows that sparked higher demand on the physical side.
• Spot gold may retest a resistance at $1,182 per ounce, a break above which could open the way towards$1,219 an ounce, according to Reuters technical analyst Wang Tao.
U.S. employment increased less than expected in December but a rebound in wages pointed to sustained labour market momentum that sets up the economy for stronger growth and the prospect of further interest rate increases this year.
• Chicago Federal Reserve President Charles Evans said on Friday the central bank could raise interest rates three times this year, faster than he had expected just a few months ago.
Reference: Reuters
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