Gold turned lower on Monday, but still lingered around the 50-day moving average.
On fundamentals, U.S. consumer prices rose 0.5 percent in September, lower than expected. Despite of the largest increase in eight months in September CPI, the core inflation has been remaining below the Fed's target of 2 percent annual price gains for six consecutive month, stoking concerns that the Federal Reserve would slower its pace to raise interest rates.
The U.S. central bank still hinted one rates hike within the year. But more doubt was cast on the outlook as U.S. President Donald Trump is working from a short list for a decision on who should chair the Federal Reserve, providing gunpowder for gold’s upward momentum.
Technical front, a golden cross is formed under the axis zero of the MACD index, with a expanding momentum column, suggesting retaining steam in bullion. Investors shall closely watch the movement around $1,300 and $1,320, and can still hold their long positions in the near term,
Spot silver joined gold’s losses on the similar drivers. But silver prices held above both the 50-day and 200-day moving average, not far from the 100-day moving average, suggesting stronger support compared with bullion.

 
Dealing Room, ICBC Beijing Branch
Cheng Yu

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