Gold
Gold prices pared gains after touching a two-week high on Thursday, after Republicans in the U.S. House of Representatives unveiled legislation to overhaul the U.S. tax system. The dollar fell and U.S. 10-year Treasury yields slid to two-week lows after House Republicans proposed to slash the corporate tax rate to 20 percent from 35 percent and reduce the number of tax brackets for individuals. Spot gold was up 0.2 percent at $1,276.79 an ounce, the highest since Oct. 20.
The pace of interest rate hike would pick up of the tax plan can be passed and successfully boost economic growth. The bill, representing what would be the largest overhaul of the U.S. tax system since the 1980s, called for slashing the corporate tax rate to 20 percent from 35 percent, cutting tax rates on individuals and families and ending certain tax breaks for companies and individuals.
Congressional passage of this legislation that would affect nearly every U.S. company and family was far from certain, and some business groups quickly came out against it. Contentious provisions will test Republicans, who control the White House and both chambers of Congress but have been unable to deliver any major legislative achievements for Trump since the businessman-turned-politician became president in January.
Technical front, gold is expected to extend rebounding with resistance at $1,280. A successful breakthrough is likely with the next resistance at the key mark of $1,300.

Silver
Silver was down 0.2 percent at $17.09 an ounce, after touching $17.24, its highest since Oct. 20. On chart, silver, with support at the 20-day moving average of $17, is consolidating at recent highs. A further breakthrough will break the resistance of $17.5 formed since October. The support at $16.5 to $17 is solid.

 
Dealing Room, ICBC Beijing Branch
Lv Yan

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