Update prices
Spot gold was down 0.2 percent at $2,386.58 an ounce by 0022 GMT, after hitting its highest since May 22 on Friday. Gold futures were down 0.2 percent at $2,393.80 an ounce.
Data on Friday showed unemployment hit a two-and-a-half-year high of 4.1 percent, indicating a slowing labor market.
Markets are pricing in a 78 percent chance of a September rate cut by the U.S. central bank, according to the CME FedWatch tool. Traders are also pricing in a growing likelihood of a second rate cut in December.
Lower interest rates reduce the opportunity cost of holding non-interest-bearing gold.
Among other precious metals, spot silver fell 0.2 percent to $31.15 an ounce, platinum fell 0.3 percent to $1,024 an ounce and palladium fell 0.8 percent to $1,017.78 an ounce.
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