Gold prices are under pressure as stocks point higher after Easter

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Gold futures traded slightly lower on Monday morning after Easter, with a spike in yields and U.S. stocks perhaps undermining bullish appetite for the safe haven metal after a report on Good Friday, when markets were mostly closed, showed a seasonal adjustment of 916,000 added jobs in March, marking the best gain since August. Markets in Europe are closed in observance of Easter Monday and US markets, which had been closed on Good Friday, appeared ready to offer an optimistic reaction to Friday’s jobs report weighing on demand for precious metals. .

The most active June gold contract GCM21, -0.02%, was down $ 4.30, or 0.3%, to trade at $ 1,724.10 an ounce on Comex, following a 0.8% gain for bullion on Thursday, the last deal of the week. shortened for the holidays, pushing the precious metal back up to a psychologically significant level above $ 1,700. However, some commodity experts are concerned that the overall trend for the yellow metal has been lower as yields rise and the outlook for the US and global economy offers evidence of an improvement from the COVID pandemic. “Price is still struggling to move above the 50, 100 and 200 day simple moving averages on the daily time frame,” Naeem Aslam, AvaTrade’s chief market analyst, wrote in a daily note. “As long as the price continues not to break above the 50-day SMA on the daily time frame, the price of gold is likely to continue to move lower and we will not see any uptrend in the price,” wrote. Meanwhile, May silver SIK21, + 0.11% was little changed at $ 24.94 an ounce on Monday. Last week, in holiday shortened trading, gold posted a 0.2% weekly decline on Thursday and silver lost 0.7%, based on the most active contracts.