Gold

Gold prices fell 0.1 percent to $1,243.46 an ounce, trading within a tight range of 0.8 percent. Global markets are watching the U.S. central bank's two-day meeting for clues about the Fed's future rate path, showing no spotlight throughout the session except some trading opportunities on the hourly chart.
Technical front, gold remained weak but with resilient support, suggesting that it’s not a good time for bargain hunting. But things are different considering a widely expected U.S. interest rate increase this week.
But the rate hike does not foresee Fed's future rate path, that can only be determined till the new Fed Chair takes office. That means what matters is not what outgoing Fed Chair Janet Yellen said in the meeting, but what she leaves to the new Fed Chair. Yellen is expected to make a hawkish statement tonight. We need to closely watch gold’s movement shortly after her speech. If it falls slightly at a moderate pace, current prices can be determined as a safe level for bargain hunting.

Silver

Silver inched up 2 cents at $15.72 an ounce, consolidating after a four-day decline. We also need to closely watch its first response to U.S. interest rate hike. Investors don’t have to worry as long as there’s no sharp losses. In case that does happen, investors need to wait till the close to determine the length of the lower shadow line.

 
Dealing Room, ICBC Beijing Branch
                       Zhao Yifei

                                  
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