* Spot gold could revert to July 23 low at $ 1,789.98 / oz – technical data
* M&A rush, earnings propel European stocks to new heights
* Dollar down 0.2% against rivals (add chart, update prices)
Aug 2 (Reuters) – Gold prices fell on Monday as an increase in appetite for riskier assets weighed on the safe haven metal, as investor attention turns to a key report on US employment expected later in the week to assess the health of the labor market.
Spot gold was down 0.3% to $ 1,807.49 an ounce at 1150 GMT. US gold futures fell 0.4% to $ 1,810.70 an ounce.
“Gold is still struggling to clearly break above the resistance level of $ 1,820 and $ 1,835. In addition, a risk scenario with European equities… adds some pressure, ”said Carlo Alberto De Casa, market analyst at Kinesis.
He added that in the event of a stronger-than-expected US non-farm payroll report in July, investors might consider the Federal Reserve to be forced to cut its stimulus package sooner than expected.
Sentiment in the broader financial markets remained bullish, with European equities reaching new highs, driven by trading activity and the strong results of Europe’s largest bank HSBC.
The non-farm payroll figures, due Friday, are the last major employment report before world central bank officials hold their annual meeting in Jackson Hole in late August. Economists in a Reuters poll predicted an increase of 926,000 jobs.
Fed Chairman Jerome Powell said last week’s interest rate hikes were “a long way off” and the job market still had “some way to go”, which saw gold surge by more than 1% last Thursday.
Falling US interest rates put pressure on the dollar and bond yields, increasing the appeal of non-performing bullion.
Offering gold a little breathing room, the dollar index slipped 0.2%. A weaker greenback makes gold cheaper for other currency holders.
Spot gold may revisit July 23 low to $ 1,789.98 an ounce as it failed to break new resistance at $ 1,832.80, Reuters technical analyst said Wang Tao.
Elsewhere, silver fell 0.2% to $ 25.42 an ounce, palladium rose 0.7% to $ 2,678.50 and platinum gained 1% to $ 1,059.03.
Reporting by Brijesh Patel in Bengaluru Editing by Kirsten Donovan and David Holmes