Gold turned lower but held above the previous day's eight-week low on Wednesday as U.S. President Trump's abrupt firing of FBI chief James Comey weighed on U.S. stocks, though gains were capped by expectations of further interest rate increases. U.S. equities paused and the dollar eased as risk appetite faded on concerns that Trump's dismissal of Comey could make it harder for him to push through tax reform plans. Spot gold was down 0.2 percent at $1,218.95 an ounce, holding above Tuesday's two-month low at $1,213.81 but turning lower as U.S. Treasury yields turned up. U.S. gold futures for June delivery settled up 0.2 percent at $1,218.90.
On technical front, gold tried to steady around $1,220 after sharp losses in the past sessions. The unpredictability of both Trump and North Korea has been a reminder that geo-risk has not disappeared. With profit-taking at this level by market bears, support and resistance can be found at $1,220 and $1,226 respectively in the near term.

Silver was down 0.1 percent at $16.16 an ounce, bouncing off highs on expectations of further interest rate increases by the Federal Reserve. In the 4-hour chart, silver held around $16.20 with a strong green line showing a prospect of further rally in coming sessions. On the daily chart, prices show signs of stabilizing, but with insufficient upward momentum. The metal is expected to keep consolidating with key resistance at $16.35.

 
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