Gold
Gold rose more than 1 percent at $1,281.46 an ounce on Monday, extending gains as geopolitical risks drove investors to safe-haven assets after the metal's third-straight weekly decline. Geopolitical issues in Saudi Arabia over the weekend and into today drove the price of gold up. The U.S. dollar dropped against a basket of currencies, also boosting gold.
We are not surprised by the pullback in the dollar index as technical correction is needed after the largest one-week advance in the year. Gold was supported, but market bullish sentiment cooled down. Hedge funds and money managers reduced their net long position in COMEX gold contracts for the seventh straight week, in the week to Oct. 31, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.
On chart, gold lingered around the 100-day moving average with strong support at the 200-day moving average of $1,262.68 which held against two tests last Friday and on Monday. The MACD index also pointed to a relatively balanced situation. Bullion is expected to remain rangebound in coming sessions with resistance at $1,285. A breakthrough would move the next resistance up to the 50-day moving average of $1,296.35.

Silver
Silver surged 2.4 percent at $17.20 an ounce, tracking gold’s trajectory. On chart, the white metal remained rangebound between the 50-day and 100-day moving average, and is trying to test the resistance of $17.20. In case of breakthrough, the next resistance can be found at $17.35.

 
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