Gold steadied after earlier touching the highest level since July as traders weighed more U.S. economic data and China's relaxation of its strict COVID-zero policies.

Bullion had been hurt by the Fed's aggressive rate hikes this year, but recent indications that the central bank is becoming less hawkish have boosted the metal, pushing it above $1,800 an ounce last week. Attention is focused on how high the central bank will take its interest rates, with policymakers expected to opt for slower tightening this month.

On the slate Monday are U.S. purchasing managers indexes and durable goods orders, which will be scrutinized for signs demand is slowing. Traders are also watching China's accelerating shift toward reopening, with Shanghai and Hangzhou easing some restrictions after protests against the nation's stringent policies.

While the precious metal slipped below $1,800 an ounce after Friday's U.S. jobs report, bets on China's reopening drove the greenback lower and further propped up bullion on Monday. Gold tends to have a negative correlation with the dollar and rates as it does not bear interest and is priced in the U.S. currency.

Strong jobs data and wage pressures "helped knock gold lower," but the metal "moved higher almost immediately and has a 'buy the dips' feel at the moment," said Nicholas Frappell, global head of institutional markets at ABC Refinery in Sydney.

Spot gold edged lower to $1,795.69 an ounce as of Monday afternoon in London, after trading at its highest level since July 5. The Bloomberg Dollar Spot Index weakened 0.2% after earlier falling to its lowest level since June. Silver fell, while palladium and platinum rose.

Sing Yee Ong and Eddie Spence report for Bloomberg News.

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