Gold pared gains from a five-month high on Monday, losing steam as U.S. Treasury yields turned higher and the dollar came off its lows, after rising geopolitical tensions over North Korea spurred earlier safe-haven buying in bullion. Spot gold was up 0.29 percent at $1,289.39 an ounce, after hitting its highest since early November at $1,295.42. This round of rally was driven by safe-haven sentiment. Ongoing tensions in North Korea and the Middle East should also keep the markets rather nervous. Gold will likely retain a measure of strength heading into the French elections in about one week's time. With the first round of France's presidential election on April 23, an unpredictable outcome is pushing some pollsters to calculate the most extreme runoff scenarios.
On technical front, gold retains under the pressure of the key mark of $1,300, but the daily chart shows signs of turnaround. The MACD and RSI index indicate that prices might pull back in coming sessions. In near term, investors shall keep an eye on tensions in North Korea and the Middle East, and France's presidential election. Investors may cautiously increased their net long positions in case the situations deteriorate, or short on highs if the situations eased.
Spot silver turned down 0.15 percent to $18.516 an ounce after touching a five-month high of $18.649. The metal was under the pressure of $18.6 after crossing over the resistance of $18.4. On technical front, the daily MACD suggests prices are expected to pull back in near term. Investors are not recommended to keep longing the metal.

 
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