Gold

Gold steadied around a 3-1/2-month high on Thursday as skepticism over the prospect of further U.S. interest rate increases and tax overhaul’s boost to inflation put the brakes on a recent rally. Spot gold rose 0.5 percent to $1,319.74 an ounce.

On fundamentals, no news could pull gold down in the near term, despite of its overbought positions in this wave of rally. A weaker dollar against other major currencies also provided a floor.

Market expected a 70 percent probability of an interest rate hike in March. But minutes from the Federal Reserve still showed policy makers’ concern over inflation. A clear roadmap on this year’s interest rake hike path still need more clues from the U.S. central bank, and further support from economic data. Short trading is not recommended as gold’s gains are expected to slow down or consolidate. On trading strategy, investors shall stay on the sidelines.

Silver

Silver rose 0.3 percent to $17.24 an ounce on Thursday, hitting an eight-week high of $17.26. But it still hovered below the resistance of $17.3-$17.4 with its gains slowing down. The chart showed lack of clues for future direction. Investors are recommended to be cautious in anticipation of a pullback in near term.

 
Dealing Room, ICBC Beijing Branch
                       Qin Gang

Disclaimer: This research report is prepared by the Industrial and Commercial Bank of China Limited ("ICBC") based on public information. Facts and views expressed in the report do not reflect the official opinion of ICBC. ICBC makes every effort to use reliable information, but makes no representation that the information is accurate or complete. ICBC bears no responsibility or liability for any direct or indirect loss arising out of (or claimed to be arising out of) using or reliance upon such information. ICBC owns the copyright of this report. This report may not be reproduced, copied, published, distributed or quoted in any way without the express written consent of ICBC. ICBC reserves the right to investigate and prosecute violations of copyright infringement to the fullest extent of the law.