Gold eases as stocks gain on robust U.S. jobs data

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Gold prices dipped in holiday-thinned trading on Monday as robust U.S. jobs data fueled hopes for a rapid economic recovery and bolstered global equities, denting bullion’s appeal.

Spot gold was down 0.3% at $1,724.50 per ounce, as of 0919 GMT. Gold futures eased 0.2% to $1,725.20 per ounce.

Most markets in Europe were closed for the Easter holiday.

The stellar March non-farm payrolls print is ramping up optimism surrounding the U.S. economic recovery, which in turn is boosting risk-on sentiment and dampening bullion demand, FXTM market analyst Han Tan said.

“Should the hard data continue to warrant more risk-taking activities in the markets, traditional safe havens are likely to struggle against the risk-on tide,” Tan said.

Global stocks rose to a 1-1/2-month high after data last week showed the U.S. economy created the most jobs in seven months in March aided by vaccine rollouts and additional pandemic relief.

Investors are now awaiting the U.S. services and non-manufacturing PMI data later in the day and minutes from the Federal Reserve’s last policy meeting on Wednesday.

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