Gold

Gold prices remained locked just below $1,300 an ounce on Tuesday as investors waited for clues on the pace of U.S. interest rate rises following the impending conclusion of a Federal Reserve policymaking meeting.

A Fed statement and press conference expected on Thursday could push gold out of the tight range of about $1,290 to $1,305, in which it has been trapped since mid-May.

Gold is highly sensitive to higher interest rates which can boost bond yields, making non-yielding bullion less attractive to investors, and could strengthen the dollar, increasing the cost of gold for buyers using other currencies.

Gold prices have tended to fall ahead of previous rate rises but recover afterwards. Investor shall closely watch the phenomena of “buying on news and sell of facts”.

Silver

Silver continued to consolidate on Tuesday, tracking gold lower. The white metal lost 0.2 percent to$16.86 an ounce after matching Monday's seven-week high of $16.95.

Investors shall watch the movement around the key mark of $17. The volatility in silver points to caution among investors ahead of the impending conclusion of a Federal Reserve policymaking meeting. It is wise to stay on the sidelines and follow the divergence between bullion and silver.

 
Dealing Room, ICBC Beijing Branch
                       Cheng Yu