Gold pared early losses and closed up 0.28 percent to $1,226.45 an ounce on Wednesday. A missile launch by North Korea prompted only a brief rally for gold before it fell to an eight-week low of $1,217.14 on rising U.S. bond yields. Bullion rebounded after Federal Reserve minutes showed a growing split among policymakers on the inflation outlook and the dollar pared gains. The payroll report due on Friday is expected to offer guidance for investors.
On technical front, gold is expected to remain rangebound in a tight range ahead of Friday’s payroll report. The support and resistance can be found at the May-low of $1,213.81 and the 200-day moving average of $1,233 respectively.
Silver was flat on Wednesday, forming a cross pattern on chart that shows a balance between market bulls and bears. On chart, the MACD and momentum index suggest a weak tone despite of support at $16. Silver prices are expected to fall further to $15.8 if the level is breached.

 
Dealing Room, ICBC Beijing Branch
Yang Hui