Gold prices per ounce stabilized after posting the strongest one-day gain in a month on Friday. U.S. labor market data showed an increase in unemployment in August, and against that background, the Fed may slow the pace of interest rate hikes.

Around 05:23 am GMT, gold in the spot market was trading near the flat line, at $1,710.88 an ounce. COMEX gold futures also held near the flat line, trading at $1,723.10.

Gold prices are up 1.3% as of today. Nonfarm payrolls in the U.S. rose more than expected in August. Nevertheless, moderate wage growth and an increase in the unemployment rate to 3.7% indicate that the labor market is starting to deteriorate.

“The Fed meeting is just over two weeks away, and the ‘hush period’ is about to begin. Therefore, traders will be watching closely for any comments from Fed officials this week, as they could signal a change in central bank policy,” said Matt Simpson, an analyst at City Index.

“Any signals that the Fed will raise interest rates by 75 basis points will put pressure on gold,” he added. The Fed will meet Sept. 20-21.

Earlier, we reported that U.S. Novelis had pledged not to buy aluminum from Russia.