Gold prices regained some ground on Monday but a firmer dollar and concerns that the U.S. Federal Reserve might keep hiking interest rates kept bullion below the $1,900-an-ounce level.

Spot gold was up 0.5% at $1,875.20 per ounce as of 0748 GMT, after hitting its lowest level since Jan. 6. U.S. gold futures rose 0.6% to $1,887.60.

Bullion prices had dropped more than 2% on Friday after data showed U.S. job growth accelerated sharply last month and the unemployment rate hit a more than 53-1/2-year low of 3.4%.

"Markets were initially looking for the first (rate) cut to come in Q3 (post-FOMC but prior to non-farm payrolls release), but expectations for the first cut have now been pushed back to November-December," said OCBC FX strategist Christopher Wong.

"Markets are now expecting the Fed to keep peak rate (still around 5%) on hold for longer. This could depress gold's appeal in the interim."

Those bets helped the dollar index rise 0.2%, adding pressure on gold by raising its cost for buyers holding other currencies.

Rising U.S. interest rates tend to dim the appeal of gold as they increase the opportunity cost of holding the non-yielding asset while boosting the dollar, in which bullion is priced.

"We see (gold) prices ranging between $1,820-$1,950, but looking ahead, we are more constructive, especially once focus reverts (as we think it will) to the likelihood of falling rates and a weaker dollar," Edward Meir, a metals analyst at Marex, wrote in a monthly note.

Spot silver rose 0.7% to $22.50 per ounce, platinum was little changed at $974.19 and palladium edged up 0.1% to $1,624.79.

"Among PGMs, supply disruptions in South Africa due to a deepening energy crisis should help to stabilise prices in the short term," ANZ said in a note. (Reporting by Kavya Guduru in Bengaluru; editing by Subhranshu Sahu and Jason Neely)