Gold

Gold rose to its highest level in 2-1/2 months on Monday as a slide in global stock markets, exacerbated by mounting tensions between Western powers and Saudi Arabia, forced investors to find safety and unwind some bearish bets in the metal.

Spot gold gained 0.7 percent to $1,226.50 per ounce, having earlier climbed more than 1 percent to touch a peak of $1,233.26, the highest since July 26. U.S. gold futures settled up $8.3, or 0.68 percent, at $1,230.3.

Holdings of SPDR Gold, the largest gold-backed ETF, rose nearly 2 percent last week. That was the biggest weekly inflow since January, following declines of more than 4 million ounces since hitting a peak in late April.

On the technical front, gold poked above the 100-day moving average at around $1,227 and a close above it could provide additional support, analysts said.

Silver

Silver gained about 1 percent to $14.69, crossing over the key resistance of the 50-day moving average. The weekly K-chart also rose above the 10-week moving average, forming a golden cross with the 5-week moving average, suggesting a new wave of rally in the medium term.

Dealing Room, ICBC Beijing Branch
                       Huang Han