Gold came off its highs on Tuesday after Federal Reserve Chair Janet Yellen stroke a hawkish tone on interest rates. Earlier, it rebounded from $1,220 to hit as high as $1,234.4 before paring gains as the dollar climbed to a three-week peak and U.S. Benchmark 10-year notes yields jumped to a two-week high. Stronger U.S. stock indexes also dampened bullion’s appeal as a safe haven against inflation.

On technical front, gold remained within its previous trading range. But the MACD and the momentum index suggested a bullish bone. Bullion could find support and resistance at the 100-day moving average of $1,214.7 and $1,240 respectively.

Silver tracked gold, bouncing off highs after hitting $18.07. On chart, the white metal met heavy resistance at $18 after crossing over the 200-day moving average of $17.90. But the MACD and momentum index still pointed to a bullish tone. The metal is expected to rise above $18 after a short-lived correction.

 
Dealing Room, ICBC Beijing Branch
Yang Hui

Note: The information herein is provided for informational purpose only. You are liable for the risk incurred to the investments based on this information provided herein.