Gold
Gold was flat in a narrow range on Thursday, first dipping as the dollar rose and then rising as the dollar moved lower, but bullion's gains were limited by higher U.S. Treasury yields.

Financial market players were concerned about a possible U.S. government shutdown, but this did not move gold very much.

On chart, gold closed at the 10-day moving average, forming a cross-star pattern. Spot gold was unchanged at $1,327 an ounce. Earlier in the session, it touched its lowest since Jan. 12 at $1,323.

U.S. House Republicans said late on Thursday they had made progress toward passing a short-term extension of government funding to avert a politically embarrassing shutdown, after a day of tough negotiations and confusion when President Donald Trump offered mixed signals on the stopgap plan.

For months, the Republican-controlled Congress has been struggling to fund the government, which is now operating on its third temporary funding extension since the 2018 fiscal year began on Oct. 1.

Following an early evening meeting of conservative leaders, House Speaker Paul Ryan and his top lieutenants, House Majority Leader Kevin McCarthy proclaimed to reporters: "We're in very good shape" for passage on Thursday night.

The growing opposition led some senators to discuss the possibility of a new approach: passing one- or two-day extensions of government funding to avoid a shutdown while lawmakers continue to negotiate.

The U.S. dollar fell. But the 10-year U.S. Treasury yield hit its highest since March 2017 at 2.61 percent in European trade, keeping the dollar on hold. Gold is expected to remain under pressure before the dollar index crossed below 90.

Silver

Silver gained 0.27 percent at $16.96 per ounce. On technical front, silver slipped for three straight days, but managed to hold around the 10-day moving average, as the dollar index was supported by the key mark of 90.

Concerns over a U.S. government shutdown dampened the dollar, while boosted precious metals. Despite of the lift by higher U.S. Treasury yield, investors were cautious abut the dollar, while hold a bullish view on precious metals. Silver prices are expected to consolidate at highs in near term.

 
Dealing Room, ICBC Beijing Branch
                       Lv Yan