Gold

Gold dipped in choppy trading on Friday as traders cashed in gains from the metal's rally to 3-1/2-month highs this week and as the dollar rose even after weaker-than-expected U.S. payrolls data for December.
North Korea agreed on Friday to hold official talks with South Korea next week, the first in more than two years, cooling safe-haven sentiment. Spot gold was down 0.2 percent at $1,319.59 an ounce, off Thursday's high of $1,325.86. It was still up 1.3 percent from last week's close.
The daily chart formed a cross star, showing cautious sentiment. Market bet that the dollar will weaken this year. But the dollar index was supported above 91.5, keeping the gold’s upward momentum in check. A correction is expected in near term. On trading strategy, investors are recommended to stay on the sidelines.

Silver

Silver was down 0.1 percent at $17.22 an ounce earlier touching its highest point in more than six weeks at $17.29, and 1.6 percent higher for the week. On chart, silver hovered below the resistance of $17.3-$17.4 with its gains slowing down. The cross-star pattern formed yesterday showed lack of direction for coming sessions. Whether a upward path can be opened shall be determined by effective breakthrough to the above-mentioned resistance. Investors are recommended to remain cautious.

 
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