BENGALURU, May 7 (Reuters) - Gold prices edged up in early trade on Monday as the dollar took a breather after climbing to its highest level this year in the previous session. FUNDAMENTALS * Spot gold rose 0.2 percent to $1,316.62 per ounce at 0034 GMT. * U.S. gold futures for June delivery were up 0.2 percent at $1,317.20 per ounce. * The dollar index , which measures the greenback against a basket of six major currencies, was steady at 92.547 after hitting its best since December at 92.900 on Friday. * U.S. job growth increased less than expected in April and the unemployment rate dropped to near a 17-1/2-year low of 3.9 percent as some out-of-work Americans left the labor force. * Two Federal Reserve officials who are currently voting members of the U.S. central bank's rate-setting committee said on Friday they were keeping an open mind on the total number of interest rate rises needed this year. * U.S. interest rate futures rose modestly on Friday, as traders still expect the Federal Reserve to raise key borrowing costs at its June 12-13 policy meeting in the wake of weaker-than-forecast growth in domestic payrolls and wages in April. * Euro zone business growth dimmed again in April but the picture remained relatively bright as new business stayed buoyant and firms managed to build up backlogs of work, a survey showed on Friday. * SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.17 percent to 864.13 tonnes on Friday from 865.60 tonnes on Thursday. * Hedge funds and money managers trimmed their net long positions in COMEX gold contracts in the week to May 1, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday. * Demand for physical gold barely changed in major Asian hubs last week even as global prices weakened, while a correction in local rates in India prompted retail consumers and jewellers to start purchases. * The World Gold Council, owner of the world's largest gold-backed exchange traded fund (ETF), is launching a new fund with a cut-price management fee to fend off rivals with lower charges, a source familiar with the matter told Reuters.