The precious metal fell as much as 0.4% on Monday before reversing, following its back-to-back weekly loss on Friday. Investors have been mulling a softer-than-expected US jobs print that added to evidence that the economy is gradually slowing, easing fears that markets are headed for a painful rut marked by high inflation and sluggish growth.

Chicago Fed president Austan Goolsbee said on Friday that additional reports like April’s would give him comfort that the economy isn’t overheating, which may boost the case for monetary easing this year. Higher rates are typically negative for bullion as it doesn’t pay interest.

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Cautious optimism over the economic outlook has curbed demand for safety assets, weighing on gold which typically benefits from haven flows. Bullion has also become less attractive in recent weeks as signs grow that the Middle East is easing away from a potential full-blown war. 

Gold has gained about 12% this year despite the elevated inflationary environment and uncertainty over when the US central bank will reduce rates. The metal made a record-breaking rally that saw it hit a succession of all-time highs in April, with those gains linked to strong central-bank purchases, demand from Asian markets and haven buying amid conflicts in Ukraine and the Middle East.

Spot gold was 0.3% higher at $2,308.86 an ounce at 9:38 a.m. in Singapore. The Bloomberg Dollar Spot Index was little changed. Silver and palladium were stronger, while platinum fell.