Gold

Gold steadied on Monday ahead of a meeting of the U.S. Federal Reserve this week that could yield clues to the future direction of U.S. interest rates and the dollar, key factors for precious metals prices.

Gold is still a dollar story with no sign of the correlation breaking down. Dollar gains since the middle of April have led to losses of about 10 percent for spot gold, pulling prices down to $1,220 from $1,350. A significant driver for dollar gains has been safe haven flows due to trade tensions. Lack of investor interest is leading gold to behave like a currency, there are no safe haven flows to gold.

Technically, gold remained at lows, a trend expected to continue in the near term. Support can be found at $1,220, a level that will be repeatedly tested in the near term, while resistance can be met at $1,240. Investors may choose to build some long positions to profit from rebound, but shall set strict stop-loss.

Silver

Silver was up 0.4 percent at $15.52 an ounce. After days of correction, the white metal regained the ground of $15.50, but fail to cover the losses after the biggest one-day decline. Trading at lows, silver can find support at around $15.20.

Dealing Room, ICBC Beijing Branch
                       Li Nan