US dollar lowest in 7 months
Investors await Jerome Powell's speech
Gold continued to strengthen to an eight-month high supported by a weak US dollar and less aggressive rate hike expectations from the Federal Reserve (Fed).
The yellow metal hit $1,880 an ounce in the New York session, before slipping slightly to trade at $1,874 an ounce in the Asian session today.
Last Friday's data, showing modest increases in US wages and a contraction in service industry activity in December prompted a more than 2% rise in gold prices.
It also pushed investments in the US dollar trading to monthly lows against major currencies and the 10-year US treasury yield to lower.
Investors are now turning their attention to Fed Chairman Jerome Powell's speech at the central bank conference in Stockholm during the New York session (Tuesday).
Any statements by Powell on inflation or interest rates will be indicative of the future direction of the Fed's monetary policy setting.
