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The price of gold turned higher on Friday, hovering below the prior session's seven-week top as the U.S. dollar weakened and U.S. Treasury yields came off their highs, with the metal on track for a third straight weekly gain.
The gold price has risen 6.5 percent since a mid-December low and on Thursday reached its highest level since Nov. 23, after President-elect Donald Trump failed to elaborate on his plans to cut taxes and boost infrastructure spending. There's clearly plenty of new long positioning that has come into the market and at current price levels there's room to take profit. Investors were looking ahead to Trump's inauguration on Jan. 20, when they will again be looking for detail on his plans for the U.S. Economy. Gold is expected to rise further ahead of more clues on U.S. economic policy coming out.
Gold price has risen almost 7 percent after hitting a 10-1/2-month low on December 15. But the key mark of 1,200 would post heavy resistance, judging from yesterday’s movement. On news front, the dollar is expected to rebound on signs of Trump’s economic policy pushing forward. Gold turned lower after touching the 100-week moving average of $1,200, a key resistance on bullion’s upside momentum.
Spot silver was up 0.02 percent at $16.80 an ounce, having hit its highest level in almost a month at $16.98 in the previous session. The metal bottomed up before testing previous resistance at $16.60. It closed the session above $16.8, and remains steam with strong support at the 50-day moving average. Silver is kept under heavy resistance within the range from $16.9 to $17.0 without technical support for a breakthrough in near term. It is more likely to turn lower as the 50-day moving average moves down, and the MACD index weakens. Investors shall keep an eye on its support at $16.6.
Dealing Room, ICBC Beijing Branch
Huang Han
Note: The information herein is provided for informational purpose only. You are liable for the risk incurred to the investments based on this information provided herein.
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