Gold

Gold rose 0.6 percent to $1,231.56 per ounce on Wednesday as the dollar slipped after leaders from the United States and the European Union agreed to deescalate a transatlantic trade conflict, and U.S. economic data came short of expectations.

U.S. President Donald Trump and the European Union's chief executive, Jean-Claude Juncker, agreed on Wednesday to work toward eliminating trade barriers on industrial goods, as Trump appeared to give ground on his threat to impose car tariffs.

They agreed to pull together a "high-level working group" to negotiate the tariff, subsidy and non-tariff barrier reductions. Trump and Juncker said after a White House meeting that they agreed to hold sweeping trade talks that also cover increased European purchases of American soybeans and liquefied natural gas (LNG) and reducing barriers to transatlantic trade in services, chemicals, pharmaceuticals and medical products.

Sales of new U.S. single-family homes fell to an eight-month low in June and data for the prior month was revised sharply lower, the latest indications that the housing market was slowing down. The moderation in housing is largely driven by supply constraints, but there are concerns that persistent weakness could eventually spill over to the broader economy.

On chart, gold could find support and resistance at the 10-day moving average of $1,230 and the 20-day moving average of $1,241 respectively.

Silver

Silver gained 0.9 percent to $15.58 an ounce, after reaching an eight-day high of $15.63. Technically, it has breached the resistance of $15.50 to close above the 10-day moving average, reversing recent losing course.

Considering the golden cross in the MACD index, the rebound is expected to continue in the near term with resistance at the 20-day moving average of $15.75. But silver prices will be still trapped in the downtrends before the resistance is breached.

Dealing Room, ICBC Beijing Branch
                       Lv Yan