Gold steadied above $1,270 on Monday. Concerns over the outlook for the U.S. election kept the metal pinned near current prices. The Federal Bureau of Investigation announced it was taking a new look at Hillary Clinton's use of a private email server while she was secretary of state, reversing investors’ confidence as market has already priced in a Clinton win. Investors were more cautious ahead of the (Nov. 8) elections in the United States, and the non-farm payrolls on Friday, with gold sticking within a $10 range. The market was quiet ahead of the U.S. Federal Reserve meeting on Tuesday and Wednesday. While hardly anyone expects Fed Chair Janet Yellen and other Fed policymakers to raise interest rates only a week before the election.
On chart, gold has regained ground after sharp losses in early October. The opening of Bollinger path narrowed down to pre-slump level and is unlikely to widen again. Bullion is more likely to consolidate in coming sessions. Investors will closely watch the 200-day moving average as it is expected to lift gold prices gradually to around $1,280. The yellow metal is expected to be kept under pressure, which will depend on market response after it converges with the 100-day moving average.
Silver tracked gold, up 0.6 percent at $17.83 an ounce. Technical indicators showed it under resistance of the 20-day moving average, suggesting further upside in near term. But the 100-day moving average at around $18.47 capped investors' anticipation toward silver’s strength. In general, the white metal is expected to trade within the range of $17.5 to $18.5.

 
Dealing Room, ICBC Beijing Branch
Lv Yan

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