International gold on Monday was seen trading near 1-week low on strong US jobs data boosting the prospects of a rate hike by the US Federal Reserve. Many analysts and Wall Street banks expect the Federal Reserve to raise interest rates in 2016 after a strong US jobs data in July.
The US Jobs data showed an addition of 255,000 jobs in the US for July 2016, as against expectations of just 180,000.
On Friday, spot gold fell to one week low of $1,334.75 after the US jobs data release. International spot gold was seen trading at $1,331 an ounce.
Gold sentiment was weighed on anticipation of interest rate hike from the central bank which can negatively impact gold.
Strengthening of dollar and a rise in equities dimmed the appeal of the precious metal as an alternative asset.
At the Multi Commodity Exchange, gold for delivery in October eased to Rs 31,030 per 10 gram, lower by Rs 198. The metal for delivery in far-month December was trading at Rs 31,320, lower by Rs 202 or 0.64 per cent per 10 gram.