Gold

Spot gold was up 0.5 percent at $1,294.44 an ounce, after hitting $1,299.13, its highest since Oct. 16, buoyed by a weaker dollar. A weaker dollar can stimulate demand for gold, making the precious metal cheaper for holders of other currencies. Also weighing on the dollar were the minutes from the latest Federal Reserve meeting, showing policymakers were concerned about low inflation and could be wary of raising interest rates rapidly.

On technical front, multiple moving averages interwoven, suggesting an incoming direction guidance. Resistance can be found at the key mark of $1,300. Holding above the level would open up an upward path.

Silver

Silver was also range-bound with its trading range narrowing, also pointing to an incoming selection on future direction. A breakthrough in gold would add steam to its momentum.

Technical front, the MACD index was approaching the axis zero. Investors could keep an eye on the movement around $17.30. In case of a breakthrough, investors may consider longing silver.

 
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.