Spot gold dipped more than 1 percent after Federal Reserve Chair Janet Yellen said the central bank needed to continue gradual rate hikes despite broad uncertainty about the path of inflation, acknowledging the central bank's struggles to forecast one of its key policy objectives. It "would be imprudent to keep monetary policy on hold until inflation is back to 2 percent, Yellen said. Gold was weighed down as the dollar shot up, while treasury yields edged slightly higher.
On technical front, spot gold settled above the 50-day moving average of $1,292.99, and is expected to cross below the level despite of some support. The next support will move down to around $1,268 amid bearish sentiment. On trading strategy, investors are recommended to sell gold on highs.
Spot silver tumbled 2.04 percent to $16.83 an ounce, well underperforming bullion. The while metal currently could find support at $16.8. If breaching down, the next support can be found at $16.3-16.4. The outlook is bearish in the near term.

 
Dealing Room, ICBC Beijing Branch
Qin Gang

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