Gold price are under selling pressure amid US dollar rally
Gold prices fell in the opening of this week trading, as the markets in cheerful mood led by the positive US jobs data, which came better than expected. Also, Traders are eying the progress of US President Joe Biden infrastructure spending plan.
The US economy has succeeded in adding jobs at a significant rate in the last seven months, with most sectors improving again, as the ramping vaccinations process against the pandemic is a positive factor for the US labor market.
With most markets closed on Monday for the Easter celebrations, thin trading and low liquidity is expected. Banks will be off in many places around the world including Australia, China, UK, and Europe.
Gold performed its worst quarter decline since 2018 as US bond yields increased and the optimistic tone dominated the markets, while gold holdings in billion exchange-traded funds fell to its lowest levels since May, in addition hedge fund managers lowered their net bullish bets on gold to its lowest level in three weeks.
As for now, gold may be trading near the levels of $1725 an ounce, if the price fell and stabilized below 1720 levels again, gold may return to retreat again in an attempt to reach levels of $1700 an ounce.