Gold down to 7-week low as traders cite weak technicals

London (Apr 1)   Gold has continued to trade around seven-week lows in commodities markets today (April 1st), with investors citing a weak technical outlook as the prime reason to shy away from bullion.

The precious metal became the subject of downward pressures as prices slumped below a key support level at $1,283 per ounce, resulting in a bout of technical selling as the bearish indicators triggered new sell orders.

Bullion has come under pressure in recent weeks as stronger US economic data led to suggestions the Federal Reserve will look to lift interest rates earlier than previously anticipated.

Yesterday, the central bank's governor Janet Yellen insisted there is still scope for policymakers to support the economy, reiterating a commitment to long-term stimulus.

Investors are now looking ahead to the March non-farm payrolls report, which is expected to show US employers added around 200,000 new jobs last month.

On the Comex division of the New York Mercantile Exchange, gold for June delivery dropped to $1,277.40 per ounce - its lowest since February 11th.

Source: onefinancialmarkets