Gold rose to the highest in nearly two months on Wednesday, after North Korea said it is considering an attack on the U.S. Pacific territory of Guam and U.S. President Donald Trump boasted of the strength of the American nuclear arsenal. The tensions rattled global markets, sending investors out of equities and into the safety of the Swiss franc, government debt and gold. Spot gold was up at $1,272.90 an ounce, on track to post the largest single-day jump in almost three months. The "fear gauge" hit its highest in more than a month. Geopolitical tensions, the dominant theme at present, pushed up safe-haven sentiment despite of better-than-expected U.S. economic data, boosting bullion prices.
On technical front, gold crossed above the resistance of $1,272, but is capped at the year-to-end high of $1,295, as the upside at the moment is the favored direction unless we start to see a conflict break out or a major stock market correction. Investors are recommended to short gold under $1,300 and set stop-loss.
Silver jumped to $16.869 an ounce, buoyed by safe-haven sentiment. On chart, the white metal breached over the 50-day moving average of $16.57, but still lingered under the 100-day and 200-day moving average. Fierce fight can be expected at the aforementioned level. In the near term, silver will track gold.

 
Dealing Room, ICBC Beijing Branch
Qin Gang

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