July 8 (Reuters) - Gold prices eased on Monday, following a
sharp fall in the previous session, as a strong U.S. jobs report
tempered expectations of an aggressive interest rate cut by the
Federal Reserve later this month.
FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,396.80 per ounce as
of 0118 GMT. Gold fell more than 1% on Friday and also marked
its first weekly decline in seven weeks.
* U.S. gold futures GCv1 were down 0.1% at $1,399.40 an
ounce.
* Nonfarm payrolls increased by 224,000 jobs last month, the
most in five months, the U.S. Labor Department reported on
Friday. * Expectations for a Fed rate cut narrowed with the market
now pricing a 27 basis points easing this month, from 33 basis
points prior to payrolls. 0#FF:
* The dollar index .DXY against basket of major currencies
was relatively unchanged on Monday after hitting 97.443 on
Friday, its highest level since June 19, as U.S. Treasury yields
rose across the board. USD US/
* Asian shares slipped on Monday as investors wagered on a
less aggressive policy easing in the United States, while the
Turkish lira held near two-week lows after the country's
president dismissed its central bank governor over the weekend.
MKTS/GLOB
* Domestic gold prices in India jumped to a record on Friday
following an unexpected increase in import duty in the country's
budget, hitting demand and forcing dealers to offer the highest
discount in nearly three years. GOL/AS
* China's gold reserves rose to $87.27 billion at the end of
June from $79.83 billion at the end of May. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.18% to 796.97
tonnes on Friday from 798.44 tonnes on Wednesday. GOL/ETF
DATA AHEAD (GMT)
* 0600 Germany Industrial Output MM May
* Bank of Japan Governor Haruhiko Kuroda delivers speech at
regional branch managers' quarterly meeting