The gold market moved lower after breaking through the $3,360 position at the beginning of the week, ending a two-day winning streak at the end of last week.
This was due to the weak US jobs report and tariff concerns that dragged the US dollar (USD) lower and provided positive support for the yellow metal commodity.
At 9.20 am, the price of gold was at $3,346.63, down 0.50% since it opened at the beginning of Monday's trading in the Asian session.
However, the upside potential for gold is slightly limited when the Non-Farm Payrolls (NFP) data was less encouraging and increased expectations of a Federal Reserve (Fed) rate cut.
The US Bureau of Labor Statistics on Friday showed that the US NFP increased by 73,000 in July, compared to an increase of 14,000 previously. Meanwhile, the US Unemployment Rate rose to 4.2% in July from 4.1% in June, as expected.
The latest tariff announcements and uncertainty over US trade policy have fueled safe-haven demand for gold.
Last Friday, US President Donald Trump hit many countries with new levies, causing shock and confusion. Investors will be closely monitoring developments surrounding the US tariff announcement.
Meanwhile, the continuation of tariff negotiations between the US and China, the world's two largest economies, will be closely watched by investors. Any signs of trade tensions arising from the talks will continue to boost the metal.
