Gold prices started the new week lower, extending the previous week's decline as the precious metal struggled to reclaim the US$4,400 level amid thin trading due to the United States public holiday.
By 3:50 pm AEST (5:50 am GMT), spot gold was down 0.8% at US$4,395.89 an ounce.
In the previous week, spot gold prices fell 0.6%.
The precious metal continues to face pressure from rising oil prices, which are stoking inflation concerns and increasing expectations of tighter monetary policy globally.
Those pressures, combined with Friday's stronger-than-expected U.S. labour market report, have kept expectations of a Federal Reserve rate hike at the September policy meeting alive.
Nonfarm payrolls increased by 162,000 in August, nearly three times the 56,000 forecast. The unemployment rate held steady at 4.1%, while the labour force participation rate rose to 61.6% from 61.4% in July.
According to the CME Group FedWatch Tool, markets are pricing in a 58.4% probability of a Fed rate increase this month following the jobs report, with attention now turning to U.S. Consumer Price Index (CPI) data due later this week.
Looking ahead, gold remains vulnerable to renewed U.S. dollar strength if tensions between the U.S. and Iran escalate further. Thin trading conditions due to the U.S. public holiday could also amplify price movements.
