The price of gold rose on Thursday for the third straight day, reaching a two-month high as another exchange of threats by the United States and North Korea prompted investors to buy bullion as a safe-haven asset. The spot gold price had gained 0.6 percent at $1,284.32 an ounce.
North Korea said it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific island territory of Guam.  The market was waiting for U.S. consumer inflation data on Friday that would offer more clues about future Fed decisions. But the data, regardless of its result, would have a limited impact on the dollar as the next policy meeting is still months away.
On technical front, gold rose for two days in a row, about $10 away from June’s year-to-end high of $1,295, and is expected to pull back once the geopolitical tensions failed to spur bullion prices above this level. Investors shall closely watch a potential pullback as the RSI is approaching the overbought range. On trading strategy, investors may short gold once the event fades away.
Silver was up 1.15 percent at $17.08 an ounce after breaching its 200-day moving average and hitting $17.24, its highest since June 14. On technical front, silver ended at the 200-day moving average of $17.09, and is expected to hold above the 200-day moving average. On near-term trading strategy, investors shall closely watch the progress of exchange of threats by the United States and North Korea.

 
Dealing Room, ICBC Beijing Branch
Qin Gang

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