Gold fell for the third straight session on Monday, reaching a 5-1/2-month low as the dollar and Treasury yields strengthened on expectations that President-elect Donald Trump will boost U.S. spending and cut taxes. Investors also reinforced their bullish expectations over the dollar and Treasury yields, sending the dollar index above the key mark of 100 and keeping gold under pressure. Trump’s hawkish tone on the Federal Reserve’s monetary policy also grew the case for the U.S. central bank to raise interest rates in December, also a weight on bullion. On technical front, the downward pressure on gold has been weakened with support from $1,200 once again. Bullion is expected to consolidate at around this level. Uncertainty about international risk events such as the Austrian presidential election and the Italian constitutional referendum next month could have an impact on risk appetite of the wider markets, making it possible for a rebound in a foreseeable future.
Silver fell 3.3 percent to its lowest since June at $16.61 an ounce, tracking gold's downside. On chart, silver closed at around $17, forming a long down shadow line, which indicates the support of bargain-hunting. The white metal is expected to steady in the future.

 
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Yang Hui

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