Gold prices drop on US dollar strength and profit taking.

Gold prices are down due to profit-taking and a rebound in the US dollar index. However, both gold and silver are in a bullish technical posture, suggesting more upside in the near term. The US Labor Department's March jobs report came in as expected, showing a rise of 236,000 jobs. The US data point of the week will be Wednesday's consumer price index report for March. The US dollar index is sharply up, while global stock markets were mixed overnight. Technically, gold and silver futures prices hit a 12-month high last week, with bulls having the solid overall near-term technical advantage.