Gold

Gold extended losses on Thursday, breaching below the support of $1,280. The U.S. economy grew faster than initially thought in the third quarter, notching its quickest pace in three years, as increases in business investment in inventories and equipment offset a moderation in consumer spending.

The U.S. economy has gathered steam this year and will warrant continued interest rate increases amid a strengthened global recovery, outgoing Federal Reserve Chair Janet Yellen told Congressional leaders on Wednesday in her final scheduled testimony on Capitol Hill. She described an economy where the jobs market remains strong and economic growth has hit three percent for two quarters running, above the Fed's estimate of U.S. potential and likely enough for an expected December rate increase. Concerns over high stock market perceived as risky lifted gold at highs.

On technical front, gold breached below the 100-day moving average of $1,285 with a bearish outlook, and support at around $1,278 and $1,267. Investors shall closely watch the outcome of U.S. tax overhaul in Senate.

Silver

Silver dropped below $16.50 an ounce, its lowest since early October, extending its losses to the fourth consecutive day. In near term, silver crossed below the lower band of previous trading range. Investors shall square their long positions timely, and may try two-way trading in case that gold falls further.

 
Dealing Room, ICBC Beijing Branch
                       Cheng Yu

                                  
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