Gold

Gold hovered near last week's six-month low on Monday as investors flocked to U.S. Treasuries rather than bullion, amid concerns over a global trade war ratcheting higher after a report said the United States plans to bar Chinese companies from investing in its technology firms.

Spot gold was down 0.2 percent at $1,266.29 per ounce. U.S. gold futures for August delivery settled down $1.80, or 0.1 percent, at $1,268.90 per ounce. The U.S. Treasury Department is drafting curbs that would block firms with at least 25 percent Chinese ownership from buying U.S. companies with "industrially significant technology," Wall Street Journal reported on Monday.

Gold, which is traditionally seen as a safe haven in times of geopolitical uncertainty, has failed to benefit as investors poured into U.S. Treasury debt. The U.S. Treasury yield curve flattened to its lowest level in over 10 years as concerns about trade wars and divisions within the euro zone boosted demand for longer-dated, safe-haven debt. On chart, some support are seen lining up at the $1,265 level, with upward momentum capped at the $1,278 area.

Silver

Silver fell 0.8 percent at $16.31 an ounce, erasing all the gains of the previous session. On chart, downside risk lingers in the near term as the 10-day moving average has breached below the 20-day moving average with the next support at $16.20.
 

Dealing Room, ICBC Beijing Branch
                       Huang Han