Gold
Gold prices extended losses on Tuesday, seeking support around $1,280,on speculation that the eventual successor to U.S. Federal Reserve Chair Janet Yellen will favor higher interest rates. Uncertainty about the next Fed chair being interpreted as being more hawkish encouraged more selling.
Meanwhile, the U.S. Labor Department said on Tuesday import prices jumped 0.7 percent last month, the biggest gain since June 2016, pushing inflation expectations higher and increasing the likelihood of monetary policy tightening.
Technical front, gold's upward momentum remains on track despite of yesterday's decline. Investors shall closely watch the movement around $1,300 and $1,320, and the support at $1,260. In case that the support is breached, investors shall square their long positions to stop loss.

Silver
Silver fell on Tuesday, having touched a one-week low of $16.92. Technically, silver prices crossed below the the 50-day and 200-day moving average, seeking support from the 100-day moving average. Without a sharp loss in bullion, the white metal is expected to see limited losses. Investors shall closely watch the support at the 100-day moving average, and are recommended to hold their long positions.

 
Dealing Room, ICBC Beijing Branch
Cheng Yu

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