Gold

Gold rose on Wednesday, hitting its highest in nearly four months as the dollar swooned after a report that Chinese officials had recommended slowing or halting purchases of U. S. Treasury securities.

The dollar, already under pressure versus the Japanese yen after the Bank of Japan moved to trim its long-dated government bond purchases this week, was on track to post its biggest single-day drop against the yen in seven weeks. The greenback also lost ground against a basket of major currencies. Spot gold was up 0.4 percent at $1,316.89 an ounce. Its session high of $1,326.56 was its highest since Sept. 15.

On chart, gold gaped up to hit multi-month high, but failed to hold above the level. The yellow metal is expected to extend rangebound with resistance at the Fibonacci 23.6% retracement level at $1,322 and support at the key mark of $1,300.

On trading strategy, investors are not recommended to chase highs. Market bears may build short positions gradually by strictly setting stop-loss.

Silver

Silver was up 0.4 percent at $17.01 an ounce, after earlier drifting to $16.86, its lowest since Dec. 29.
Tracking gold, silver extended rangebound. Once the support of the 100-day moving average and 200-day moving average of $16.93 are crossed below, the white metal is expected to see a wave of decline. On trading strategy, investors are recommended to stay on the sidelines, and wait for betting after direction is confirmed.

 
Dealing Room, ICBC Beijing Branch
                       Li Nan