Gold

Gold edged lower on Tuesday, weighed down by a stronger U.S. dollar on the back of concerns about political uncertainty in Europe, while a buoyant stock market also drained enthusiasm for bullion.

The euro is being weighted down on concerns about upcoming Italian elections, problems forming a German government and lingering Brexit concerns, he added.

Spot gold was down 0.6 percent at $1,312.58 per ounce. Prices last week touched their highest since Sept. 15 at $1,325.86. U.S. gold futures for February delivery settled down $6.70, or 0.5 percent, at $1,313.70 per ounce.

On chart, gold failed to breach the Fibonacci 23.6% retracement level at $1,322, suggesting a reverse course on track. Gold is expected to see a correction in the near term with support at $1,300 to $1,302.

On trading strategy, investors are recommended to stay on the sidelines. While those with net long positions may consider cash in profits and rebuild positions after it pulls back. Bears may build short positions, on conditions of strictly setting stop-loss.

Silver

Silver fell 0.93 percent at $16.98 an ounce. Retreating above the 100-day and 200-day moving average, it can find some support at $16.95. Silver is expected to remain rangebound in near term. On trading strategy, investors are recommended to stay on the sidelines.

 
Dealing Room, ICBC Beijing Branch
                       Li Nan