Gold edged lower on Tuesday after U.S. equities hit all-time highs on market expectations for higher growth and more spending from a Donald Trump presidency. Trump's victory in the Nov. 8 U.S. election initially saw a flight to safe-haven assets such as gold but the trend quickly reversed as the dollar and bond yields surged on expectations of higher U.S. spending and interest rates. Adding further pressure on gold was the expected rise in U.S. interest rates in December, traders and analysts said. The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings fell 0.71 percent to 908.77 tonnes on Monday. Holdings have fallen 3.6 percent so far this month.
On technical front, gold was lingering around $1,210. The MACD index formed a long negative momentum column, suggesting still heavy downward bearish pressure. But the RSI pointed to a oversold range, meaning accumulating rebound demand. The support and resistance can be found at $1,207 and $1,240 respectively.
Silver remained rangebound at lows, up 0.2 percent to $16.58 an ounce. The MACD index still showed strong downward momentum, while the RSI index approached oversold range, indicating demand for correction in coming sessions. Silver is expected to be kept at lows in near term amid a bearish environment for precious metals under the impact of growing expectations over interest rate hike by the Federal Reserve.

 
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