Gold

Gold eased on Wednesday as the dollar strengthened. The U.S. Federal Reserve kept interest rates unchanged on Wednesday but characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September.

Gold stayed weaker after the U.S. Federal Reserve kept interest rates steady as expected. The Fed said economic growth has been rising strongly and the job market has continued to strengthen while inflation has remained near the central bank's 2 percent target since its last policy meeting in June, when it raised rates. The Fed currently expects another two rate rises by the end of the year. Investors had all but ruled out a move at this week's meeting, with their sights set on rate hikes next month and in December.

Gold continues to flounder near recent lows as trade disputes with China, and other global counterparts would continue to support the dollar.

On the daily chart, gold pulled back on Wednesday, crossing below the support of $1,220 to $1,217. A downtrend is expected to continue in the near term with the next support at around $1,210.

Silver

Silver declined 0.6 percent to $15.42 an ounce, paring all the gains in the last three trading sessions. The white metal is expected to remain at recent lows with support and resistance at $15.20 and $15.90 respectively.

Dealing Room, ICBC Beijing Branch
                       Li Nan