Gold fell to its lowest price in 10 months on Monday as global equities strengthened and investors shrugged off worries of political instability in Italy after a crushing defeat in a referendum on constitutional reform. U.S. Treasury yields rose as the Institute for Supply Management said the pace of growth among domestic services industries accelerated more than forecast in November, pulling more funds into the dollar asset, while sending gold further down. Gold can hardly see any remarkable rally due to the high expectations on interest rate hike by the Federal Reserve policy meeting this week. But its losses can also be limited considering its current level well below $1,200. The impasse cannot be broken until the Fed’s meeting.
Spot silver dropped 0.1 percent, tracking gold’s trajectory. On chart, the 50-day moving average has crossed below the 200-day moving average, potentially forming a death cross, a technically bearish formation. The key mark of $17 will continue to impose effective resistance.
 

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