Spot gold had risen 0.1 percent to $1,205.86 per ounce by 0039 GMT. It fell to its weakest since Jan. 31 at $1,194.55 on Friday, but recovered to hit a high of $1,206.36 after U.S. jobs data failed to meet the expectations of some investors.    

U.S. gold futures rose 0.4 percent to $1,205.80 an ounce.

Labor Department data, which showed U.S. non-farm payrolls rose 235,000 last month, beat official forecasts but was not enough to satisfy those whose expectations had been boosted by a strong private payrolls number earlier in the week.                 

Japan’s core machinery orders unexpectedly fell in January from the previous month, highlighting that the country’s economic recovery remains fragile.                  

While an imminent hike in U.S. interest rates is putting a downdraft on gold prices, bullion’s allure as a safe-haven is likely to limit the downside, traders and analysts say, owing to uncertainties in the United States and Europe.                 

India’s ambitious plan to recycle thousands of tonnes of gold lying idle in temples and households looks to have foundered on concerns over high costs and slight returns, in a blow to government hopes of cutting imports of the metal.                 

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 1.06 percent to 825.22 tonnes on Friday from 834.10 tonnes on Thursday.              

Hedge funds and money managers slashed their net long position in COMEX gold from the highest in 3 months in the week to March 7, and cut it slightly in silver, U.S. Commodity Futures Trading Commission data showed on Friday.

Source: UK Reuters