Gold extended gains on Tuesday, lingering around $1,210, as a drop in equities drove safe-haven buying and the U.S. dollar retreated. U.S. stocks and the dollar reversed gains after U.S. President Donald Trump's eldest son released an email chain which mentioned a top Russian government prosecutor offering the Trump campaign damaging information about Democratic rival Hillary Clinton. Concerns on political risks in the U.S. Would boost gold prices. Traders awaited a speech from U.S. Federal Reserve Chair Janet Yellen later this week and any signs of tightening of monetary policy from the central bank. A hawkish speech would cap gold's gains.
On chart, gold formed a M-shaped top with limited up momentum, suggesting further falls. The support can be found at $1,200 and $1,180 successively, while resistance can be found at the 200-day moving average of $1,232.
Silver rose on Tuesday, off a four-month low. But investors shall closely watch the risk of widening trading range and the MACD index after sharp losses last week, and trade accordingly. The white metal is expected to keep current downtrend with limited upward potentials. We maintain our vies that the support and resistance can be found at $15 and the 50-day moving average of $16.74 respectively.

 
Dealing Room, ICBC Beijing Branch
Cheng Yu

Note: The information herein is provided for informational purpose only. You are liable for the risk incurred to the investments based on this information provided herein.