Gold edged higher on Tuesday, snapping a three-session losing streak. Before that, the dollar and Treasury yields strengthened on expectations that the economic policies of President-elect Donald Trump will boost U.S. inflation, dragging down gold. Treasury yields pulled back after investors’ response cooled, sending gold prices higher. On market sentiment front, investors were more rational on Trump’s win, and were seeking more details on his policies, posing a moderate effect on precious metals. On chart, the effectiveness of the support of $1,200 was proved once again. Gold is expected to consolidate around current level in case of a quiet market.

Silver rebounded on Tuesday, closing above $17 an ounce. We believe that the white metal, like gold, will consolidate at around current level due to lack of guidance on fundamentals.

 
Dealing Room, ICBC Beijing Branch
Yang Hui

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