Gold
Gold prices on Thursday approached a four-month high set on the previous day after minutes of a European Central Bank meeting showed a more aggressive tone and boosted the euro against the U.S. Dollar.

The December meeting minutes said the central bank should revisit its policy message in early 2018 and gradually adjust its language to reflect improved growth prospects. Investors would probably take a policy message change as a sign that rate-setters may begin to wind down their 2.55-trillion-euro bond-buying program.

A stronger euro potentially boosts demand for gold by making dollar-priced bullion cheaper for European investors. The dollar weakened more broadly after U.S. data showed a rise in jobless claims and a decrease in producer prices. Spot gold was up 0.5 percent at $1,322.74 an ounce after touching $1,326.56 on Wednesday, the highest since Sept. 15.

On chart, gold edged up in a choppy trade, but was still capped by the Fibonacci 23.6% retracement level at $1,322. Prices will continue to test the resistance in the near term. A correction is expected if no effective breakthrough is made.

On trading strategy, investors are not recommended to chase highs. Market bears may build short positions gradually by strictly setting stop-loss.

Silver

Silver was up 0.1 percent at $16.96 an ounce from a two-week low of $16.86 on Wednesday. We maintain our view on rangebound trading in the near term.

The 100-day moving average and 200-day moving average of $16.93 continued to provide a floor. Investors can keep an eye on the movement around this level. On trading strategy, investors are recommended to stay on the sidelines before direction is confirmed.

 
Dealing Room, ICBC Beijing Branch
                       Li Nan