Gold holds above $1,290 as weak jobs data allays rate hike fears

SINGAPORE (Reuters) - Gold was well-supported above $1,290 an ounce on Monday as surprisingly weak U.S jobs data diminished fears the Federal Reserve will raise interest rates soon, and as weaker stocks prompted some safe-haven bids.

FUNDAMENTALS

* Spot gold was little changed at $1,293.06 an ounce by 0019 GMT, after gaining nearly 1 percent on Friday following the weak U.S. data. U.S. gold was also holding steady at $1,294.40.

* Data on Friday showed U.S. job growth slowed in July and the unemployment rate unexpectedly rose, pointing to slack in the labour market. Nonfarm payrolls increased 209,000 last month, while economists had expected a 233,000 gain.

* The data supports Fed' view that a significant labour market slack remained, signalling the need for patience on the rate front.

* A majority of Wall Street's top bond firms see no move by the Fed to raise interest rates before the second half of next year, a Reuters survey showed on Friday.

* Hedge funds and money managers cut their bullish bets on gold futures and options as the yellow metal's prices fell in the week to July 29, the Commodity Futures Trading Commission said on Friday.

* Violence and geopolitical tensions in the Middle East and Ukraine also supported gold, which is seen as an alternative investment to riskier assets such as equities.

* Global equities markets dropped for a fourth day on Friday, hurt by worries about Argentina's debt problems and weak jobs data.

(Reporting by A. Ananthalakshmi; Editing by Michael Perry)