By Peter Hobson
REUTERS - Gold fell from one-month highs on Wednesday after better-than-expected U.S. jobs data boosted U.S. bond yields and the dollar, but safe-haven demand ahead of a meeting of U.S. and Chinese leaders limited losses.
A stronger dollar makes gold more expensive for holders of other currencies, while higher bond yields dampen demand for non-yielding bullion.
Spot gold was down 0.8 percent at $1,245.63 an ounce at 1400 GMT, while U.S. gold futures were 0.8 percent lower at $1,248.40 an ounce.
Gold touched $1,261.15, its highest since Feb. 27, on Tuesday but failed to close above its 200-day moving average, currently at $1,258, for the third time in less than six weeks.
"The failed consolidation above the 200 DMA has no doubt hit investor confidence, however we do still continue to see solid interest for the metal at current levels," said Sam Laughlin at MKS PAMP.
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Investors were poised to push gold higher, said Georgette Boele at ABN AMRO. "Upward momentum is getting stronger. It looks like the market is not willing to give up yet."
Gold has risen 8.8 percent so far this year and has held just under its 200-day moving average since late March.
But investors were hesitating ahead of U.S. non-farm payrolls data due on Friday and the minutes from the most recent U.S. Federal Reserve meeting to be released later on Wednesday, Boele said.
Hawkish signals from the Fed would undermine gold prices because higher interest rates lead to higher bond yields. Sharp gains in employment would bolster the case for rate rises and likely boost the dollar.
A preview of the non-farm payrolls came on Wednesday when the less comprehensive ADP National Employment Report showed that U.S. private employers added 263,000 jobs in March, beating economists' forecasts of 187,000 additions.
The data pushed up the dollar and U.S. bond yields and sent gold to its lowest since March 31. [FRX/] [US/]
Gold was supported however by demand for safe assets after a chemical attack in Syria appeared to put Russia and the United States on a diplomatic collision course and North Korea fired a ballistic missile into the sea ahead of a summit between U.S. President Donald Trump and Chinese President Xi Jinping.
Spot silver was down 0.4 percent at $18.20 an ounce, having touched a one-month high of $18.41 in the previous session.
Platinum advanced 0.1 percent to $959.60 an ounce, while palladium was up 1.1 percent at $813.50.
(Additional reporting By Nallur Sethuraman in Bengaluru, editing by David Evans and Susan Thomas)