OREANDA-NEWS. Gold turned lower on Monday as the US dollar rose and investors cashed in gains after upbeat Asian demand lifted the metal to two-week highs, with expectations for a rise in US interest rates later this year keeping a lid on prices.

Spot gold was down 0.3 percent at \$1,208.90 an ounce by 2:11 p.m. EST (1911 GMT). US gold futures for April delivery settled down \$4.90 an ounce at \$1,208.20.

Earlier, spot prices rose to \$1,223.20 an ounce, their highest since Feb. 17, after an interest rate cut in Beijing lifted demand in China, the world's second-largest gold market.

"The higher levels we saw were a good opportunity for some of the bears in the market, who are focusing on the fact that the Fed looks to be on course to raise rates, to take some profits," Societe Generale analyst Robin Bhar said.

"We have non-farm payrolls data this week, which always sends markets into a bit of a frenzy. Going by recent evidence, the number is likely to be strong again. That should strengthen the dollar and maybe take some of the attractiveness of gold away."

The dollar rose, with an index that tracks the greenback against major currencies touching an 11-year peak.

"The buck-denominated precious metals have been weighed down further by a stronger dollar today, which has rallied despite the release of some weaker-than-expected US data," Fawad Razaqzada, technical analyst at Forex.com, said in a note.

The pace of US manufacturing growth fell in February to its slowest in 13 months, the Institute for Supply Management said.

Overnight, premiums for physical gold at the Shanghai Gold Exchange stayed firm at around \$4-\$5 an ounce over the global spot benchmark on Monday.

Top buyer India kept the import duty at a record 10 percent in a setback for jewelers.

"The news must have disappointed some bullish speculators, some of whom may have now abounded their positions on gold and silver as a result," Razaqzada said.

Spot silver was down 0.9 percent at \$16.45 an ounce. Platinum was up 0.4 percent at \$1,188.24 an ounce, while palladium was up 1.6 percent at \$828 an ounce.

Autocatalyst metal palladium hit its highest since mid-September at \$832.15 after buy stops were triggered near \$821 an ounce, its December high, traders said.