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Spot gold edged lower on Monday, but remained supported in the face of a firm dollar as investors bet a weaker U.S. payroll report would push out the timing of any rate hike.

The U.S. economy added the fewest number of jobs in seven months in April and Americans dropped out of the labour force, leaving some economists anticipating only one interest rate hike this year. But encouraging annual wage growth data helped the dollar to revive.

Also weighing on the precious metal were remarks by a senior Federal Reserve official on Friday, who indicated that U.S. interest rates could still rise sooner than expected. New York Fed President William Dudley said that it was reasonable to expect two rate hikes this year despite weaker-than-expected April data on hiring.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose to 94.04 in early trade Monday, the most since April 28. It last stood at 93.92, up 0.1% for the day.

Prices of the yellow metal are up nearly 20% so far this year as expectations faded that the Fed would move to normalize interest rates due to fears over the global economy.

FXTechstrategy said “The commodity remains weak and vulnerable as it looks to correction further lower. On the downside, support comes in at the 1,280.00 level where a break will turn attention to the 1,270.00 level. Further down, a cut through here will open the door for a move lower towards the 1,260.00 level. Below here if seen could trigger further downside pressure targeting the 1,250.00 level. Conversely, resistance resides at the 1,295.00 level where a break will aim at the 1,300.00 level.”