Gold fell from one-month highs on Wednesday after better-than-expected U.S. jobs data boosted U.S. bond yields and the dollar but losses were limited after minutes from the Federal Reserve's March policy meeting were released. Earlier in the session, the ADP National Employment Report showed that U.S. private employers added 263,000 jobs in March, beating economists' forecasts of 187,000 additions. U.S. 30-year Treasury yields and the U.S. dollar hit session highs immediately after the Fed minutes were released but gave up most gains later in the session. Bullion pared some losses after the Fed's minutes showed most policymakers think the central bank should take steps to begin trimming its $4.5 trillion balance sheet later this year as long as the economic data holds up.
On technical front, gold lingered around $1,250 throughout the day. After hitting $1,261.15 on Tuesday, the highest since February 27, bullion failed to the 200-day moving average of $1,258, the third time in less than 6 weeks. Investors shall be cautious.
Silver tracked gold on Wednesday, bottoming up to close little changed at $18.31. Technically, the MACD momentum column continued to contract, a bearish tone for gold. The chart pattern showed that investors diverged on silver’s future movement. Investors shall remain cautious. The resistance and support can be found at $18.45 and $18 respectively.

 
Dealing Room, ICBC Beijing Branch
Huang Han

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