Gold prices rose 1 percent to their highest in more than two weeks on Thursday as U.S. bond yields declined on waning risk appetite, reducing the U.S. dollar's appeal against safe-haven currencies such as the Japanese yen. Bullion regained the ground of $1,150, providing a floor to gold prices. A drop in U.S. exports last month pushed the country's trade deficit in goods higher while the number of Americans filing for unemployment benefits fell last week in a positive sign for the labor market. The two reports released on Thursday suggested that when Donald Trump becomes America's president next month, the labor market will likely be at roughly full strength and international trade could be weighing on the economy. Gold fell more than 8 percent in November as U.S. Treasury yields rose after Donald Trump's election led to speculation his commitment to infrastructure spending would spur growth. The U.S. central bank has signalled that it expected three more increases next year, up from a previous projection of two. All these elements kept gold under pressure in the medium and long term.
On technical front, gold closed in the positive territory for five sessions in a row. The upside momentum column is expected to expand as the opening of the MACD index widening. In the near term, gold is expected to extend its strength. The next target is $1,168 after crossing above $1,150.
Silver extended gains in its fourth consecutive day, hold above the key mark of $16. Technically, silver underperformed gold, showing its weaker risk appetite. , in the meanwhile, the MACD index turned positive, but its lower strength might curb its upside momentum. Investors shall keep an eye on the resistance of $16.50.
 

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