Gold

Gold edged lower on Wednesday, seeing support from $1,280. The U.S. economy grew faster than initially thought in the third quarter, notching its quickest pace in three years, as increases in business investment in inventories and equipment offset a moderation in consumer spending.

The U.S. economy has gathered steam this year and will warrant continued interest rate increases amid a strengthened global recovery, outgoing Federal Reserve Chair Janet Yellen told Congressional leaders on Wednesday in her final scheduled testimony on Capitol Hill. She described an economy where the jobs market remains strong and economic growth has hit three percent for two quarters running, above the Fed's estimate of U.S. potential and likely enough for an expected December rate increase. The dollar steadied, dragging down gold.

On technical front, gold failed to breach over the key mark of $1,300, and pulled back below the 100-day moving average. But the overall upward momentum remained intact. Holding above the near-term resistance of $1,300 would open up an upward path.

Silver

Silver tracked gold, down to the lowest since early October at around $16.50. In the near term, the yellow metal is moving toward the lower band of previous trading range. In case of crossing below the range, a downward path can be expected.

 
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                       Cheng Yu

                                  
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