Gold surged above $1,200 an ounce to its highest in seven weeks on Thursday as the dollar fell after U.S. President-elect Donald Trump's long-awaited news conference gave few details on economic policy. Spot gold was up 0.5 percent at $1,197.64 an ounce, after touching $1,206.98, its loftiest since Nov. 23. Trump delivered a wide-ranging briefing on Wednesday that lasted longer than expected but contained no details on tax cuts and infrastructure spending, analysts said. That sent the dollar index sliding to the lowest in nearly five weeks. The outlook for U.S. rates may become a little clearer when Federal Reserve Chair Janet Yellen appears at a webcast town hall meeting with educators on Thursday. This move can go a bit further before there’s more clarity on U.S. economic policy. This round of rally is boosted by market doubts on whether Trump’s promises would be delivered after he takes office.
Gold will run out of steam after crossing above $1,200. Prices has risen around 7 percent after hitting a 10-1/2-month low on December 15. On news front, the dollar would rebound once signs show that Trump administration will push forward its economic plans. Technically, gold is about to breach above the 50-day moving average after a three-week winning streak. The metal is expected to meet the mid-band of Bollinger path at around $1,230, a possible resistance on its upward momentum.
Silver was up 0.4 percent at $16.79 on Thursday after hitting a four-week peak of $16.98. The metal pared gains later on, and closed below $16.8 with support at the 50-day moving average. Technical indicators could barely provide any support for it to breach the heavy resistance between $16.8 to $17.2. As the 50-day moving average moves further down and the MACD index turns sour, silver is more likely to reverse its course. Investors shall keep an eye on its support at $16.6.
 

Dealing Room, ICBC Beijing Branch
Lv Yan

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