Gold rose to a two-month high on Monday, as unease over the economic policies of U.S. President Donald Trump pushed investors towards safer assets while the dollar and U.S. bond yields fell. Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal and told U.S. manufacturing executives he would impose a hefty border tax on firms that import products after moving American factories overseas. The U.S. dollar fell to a seven-week low against a basket of key world currencies and global stock markets declined amid investor concerns over Trump's protectionist rhetoric. A weaker dollar makes gold cheaper for holders of other currencies, while lower yields reduce the opportunity cost of holding non-yielding bullion. Spot gold was up 0.6 percent at $1,216.33 an ounce, after tapping $1,219.43, its highest since Nov. 22. U.S. gold futures settled up 0.9 percent at $1,215.6 per ounce.
On technical front, gold extends its gains and retains its steam in near term. The yellow metal would find support at $1,210, $1,200 and $1,180, and resistance at the 50 percent Fibonacci retracement of $1,230 since last November and the 100-day moving average of $1,235 successively.
Silver tracked gold, up a modest 0.6 percent to $17.22 an ounce. On chart, it has breached previous resistance of $17, unleashing its upward momentum. Market bulls are expected to take an upper hand in near future. But its gains could be limited as the 100-day moving average moves down. The resistance can be found at $17.50.
 

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