Gold

Gold steadied on Monday as the dollar hovered near three-year lows, but bullishness in the wider financial markets as the U.S. government shutdown ended capped the metal's gains.

Legislation to renew government funding easily cleared a procedural hurdle in the Senate and was expected to pass both the Senate and House of Representatives, allowing government to reopen through Feb 8. The dollar pared losses against a basket of currencies and U.S. stocks surged in afternoon trading after senators reached the deal.

Spot gold edged up 0.05 percent at $1,332.13 per ounce. U.S. gold futures for February delivery settled down $1.20, or 0.1 percent, at $1,331.90 per ounce. The precious metal fell 0.5 percent last week, its first weekly decline in six weeks, after hitting four-month highs last Monday.

The dollar steadied as U.S. Treasury yields rose as investors saw limited economic fallout from the political standoff. Most people were looking at the U.S. government shutdown.

Historically you don’t really get much market reaction to this, in addition that the dollar index has retreated to a historic trough after a three-month decline. Investors with net long positions are recommended to cash in profits as it’s too risky to hold long positions at current level.

Silver

Silver fell 0.2 percent at $16.97 per ounce. On technical front, silver was traded more volatile after a 14-session consolidation. The trend will extend after trapping in the narrow range of $16.9 to $17.5. Investors are recommended to cut their positions to evade risks if the white metal breached below the 100-day moving average of $16.92.

 
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