Gold

Gold climbed nearly 1 percent on Tuesday, having drifted near $1,200 an ounce this week, as the U.S. dollar fell versus China's yuan against a backdrop of U.S.-China trade tensions. Spot gold gained 0.3 percent at $1,210.06 per ounce, while U.S. gold futures for December delivery settled up 60 cents, or 0.1 percent, at $1,218.30.

Chinese shares jumped the most in more than two years on investor hopes of fresh government spending and amid a pause in the trade tensions, while the dollar slid versus the yuan and a currency basket. At the moment gold is more sensitive to the yuan than the dollar, so if the dollar is rallying but not against the yuan, gold is stable.

United States moved to reimpose sanctions on Iran. The sanctions target Iran's U.S. dollar purchases, metals trading, coal, industrial software and its auto sector. Traders expect more Iran gold demand as investors seek to use bullion to operate globally. Gold is expected to start bottoming out around $1,200, but at a slow pace, as yuan steadied and an expected increasing demand from Iran.

Silver

Silver rose 0.7 percent to $15.37 an ounce, still entrapping in current trading range. We believe the trend will continue with support and resistance at $15.20 and $15.70 respectively.

Dealing Room, ICBC Beijing Branch
                       Huang Han