FX.co ★ Gold Holds Steady In Thin Holiday Trade

Gold prices were steady on Monday and the dollar slipped as soft U.S. jobs data released on Friday boosted the Fed's hopes of a soft landing.

As rate hike worries ease, investors shifted their focus to the U.S. services PMI figures due this week.

The dollar edged lower in thin holiday trade after data showed the labor market cooling and wage growth slowing, supporting optimism the Federal Reserve is nearing the end of its tightening cycle.

Separate data showed U.S. manufacturing contracted for a 10th straight month in August.

Investors expect U.S. interest rates to peak soon. Markets now price in a 93 percent chance of the Fed holding rates steady this month and over 60 percent chance of no more hikes this year.

U.S. data due this week include reports on the U.S. trade deficit, factory orders and service sector activity as well as the Federal Reserve's Beige Book.

U.S. markets are closed today on account of Labour Day.