Gold prices traded higher on Monday. Spot gold rose to $1,197.80 a troy ounce in morning European trade. Gold lost 1.1% on Friday after the better-than-expected U.S. labour market data. The U.S. economy added 321,000 jobs in November, exceeding expectations for a rise of 225,000 jobs, after a gain of 243,000 jobs in October. October's figure was revised up from a rise of 214,000 jobs.

The U.S. unemployment rate remained unchanged at 5.8% in November, in line with expectations.

Gold was also supported by speculation on further stimulus measures in China, Japan and the Eurozone.