Gold
Gold steadied after touching a 2-1/2 week low on Wednesday on reports that Republican senators favored John Taylor to become the next head of the U.S. Federal Reserve, which drove U.S. bond yields to multi-month highs. The market was pricing in one rate increase in December and one more next year, while the Fed itself envisaged three rate hikes in 2018 and was likely to move more rapidly than previously expected under Taylor.
While that kept prices of the precious metal under pressure, geopolitical risk pulled bullion prices back from earlier losses. A senior diplomat in North Korea said the foreign minister's warning of a possible atmospheric nuclear test over the Pacific Ocean should be taken literally. North Korean Minister of Foreign Affairs Ri Yong Ho said in September that Pyongyang may consider conducting "the most powerful detonation" of a hydrogen bomb over the Pacific Ocean amid rising tensions with the United States.
Bullion prices were hovering just above its 100-day moving average at $1,275, and is expected to take rangebound between $1,275 to $1,285.

Silver
Silver was down 0.06 percent at $16.93 an ounce, tracking gold’s trajectory. It remained rangebound, reversing early losses. On trading strategy, investors can take bargain hunting and sell on highs with resistance and support at $17 and $16.88 respectively in the near term.

 
Dealing Room, ICBC Beijing Branch
Huang Han

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