Gold

Gold edged lower after U.S. Federal Reserve chair nominee Jerome Powell told the Senate Banking Committee at his confirmation hearing that the Fed was likely to raise interest rates next month. But the white metal remained at high supported by geopolitical tensions after North Korea on Wednesday fired what appeared to be an intercontinental ballistic missile (ICBM) that landed close to Japan, officials said, Pyongyang's first test launch since mid-September.

Trump, who was briefed on the missile while it was in flight, said that North Korea’s latest ICBC was “a situation we will handle”, and it did not change his administration's approach to North Korea, which has included new curbs to hurt trade between China and North Korea. An escalated geopolitical tensions will push gold prices sharply higher.

On technical front, gold remained within previous trading range without making decisive choice on direction. We maintained our view that the near-term resistance can be found at $1,300. Holding above the level would open up an upward path.

Silver

Silver was down 1.1 percent at $16.84 per ounce, dampened by mounting safe-haven sentiment. Technical front, silver was also range-bound, awaiting more guidance on future direction. The MACD index was approaching the axis zero. Investors could keep an eye on the movement around $17.30 before making taking bets. In case of a breakthrough, investors may consider longing silver.

 
Dealing Room, ICBC Beijing Branch
                       Cheng Yu

                                  
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