Gold

Gold prices rose on Tuesday as the U.S. dollar fell to fresh three-year lows, but an end to uncertainty created by a three-day U.S. government shutdown capped gains.

Spot gold was up 0.3 percent at $1,337.36 an ounce at 1:38 p.m. EST (1838 GMT) after touching a one-week high of $1,339.09, while U.S. gold futures for February delivery settled up $4.80, or 0.4 percent, at $1,336.70 per ounce.

The dollar index fell to a fresh three-year low against a basket of six currencies, after data showed euro zone consumer confidence jumped much more than expected in January, underlining the strong momentum in its economy.
U.S. benchmark 10-year Treasury note yields fell to a five-day low, while 30-year bond yields sank to a one-week low. Declining yields typically make gold more attractive to non-U.S. investors.

Despite of yesterday’s gains, the risk of building long positions mounted due to an end to uncertainty created by U.S. government shutdown, and faster economic growth in the world's largest economy against the dollar index at historic lows. Investors are recommended to cash in profits.

Silver

Silver was down 0.5 percent at $16.92 an ounce after touching a $3-1/2-week low of $16.73, nearing the 50-day moving average of $16.70. The white metal underperformed compared with gold, suggesting incoming changes.

Technical front, silver managed to hold at lower band of the $16.9-$17.5 range. Investors are recommended to trim their positions to prevent risks, if it fell below the 100-day moving average of $16.92.

 
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