Gold

Gold inched higher on Monday, as investors anticipated the U.S. central bank monetary policy meeting this week that is expected to boost interest rates, and ahead of a U.S.-North Korea summit.

The U.S. Federal Reserve will likely raise its target interest rate to above the rate of inflation for the first time in a decade, seeking to sustain the second-longest U.S. expansion on record while continuing to edge rates higher.

Weighing on gold were encouraging signs from U.S. President Donald Trump about a summit with North Korean leader Kim Jong Un in Singapore on denuclearization efforts, dimming gold's safe haven attraction.

On chart, gold was tight rangebound around the key mark of $1,300, awaiting more clues. The yellow metal remained hemmed within its narrowest weekly range in a decade. Investor shall closely watch the phenomena of “buying on news and sell of facts”.

Silver

Silver was entrapped into correction under the resistance of the key mark of $17. Without support from a weakening gold, the white metal sees limited upward momentum.

On chart, the golden cross in the MACD index is not sufficient to sustain silver’s gains. In the near term, every rally can be deemed as an opportunity for two-way trading if gold fails to cross above key mark.

 
Dealing Room, ICBC Beijing Branch
                       Lv Yan