Gold climbed on Monday to its highest in more than seven weeks on buying fuelled by political uncertainty after comments by U.S. President-elect Donald Trump on NATO and China. Bullion edged higher lifted by safe-haven buying. On fundamental front, gold rose steadily as market views turn negative on the U.S. dollar after recent hefty gains and the appearance of risk events. British Prime Minister Theresa May’s  long-awaited speech on upcoming Brexit negotiations due on Tuesday, and Donald Trump’s inauguration speech on Friday will trigger market turbulence once again. The yellow metal is expected to extend gains out of safe-haven bids amid this background.
On chart, gold is lingering around the 100-week moving average of $1,200, which is likely to turn to a support if gold could hold above this level.
Spot silver rose slightly, holding above $16.8 an ounce with the solid support of the 50-day moving average. But the metal is expected to remain range-bound in near term with hefty resistance between $16.9 to $17.0.
 

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Yang Hui

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