Gold slipped 0.2 percent at $1,233.40 an ounce on Tuesday, after rising to $1,235.78, its highest since Nov. 11, pressured by earlier strength in the dollar as the dollar index rose by 0.04 percent. Focus shifted to Europe following weak German industry data and nervousness ahead of the French elections, lifting both the dollar and bullion. Controversy over U.S. President Donald Trump's temporary travel ban on people from seven Muslim-majority countries has recently boosted gold as safe-haven assets to a three-month peak. Weaker output in manufacturing drove the biggest monthly drop in German industrial production in nearly eight years in December. Safe-haven demand increased as investors feared far-right, eurosceptic candidate Marine Le Pen was gaining momentum before France's presidential election.
On technical front, gold took a breathe on Tuesday after a three-day winning streak, as the K-chart showed. Consolidating at around $1,230, it was further away from the downside 100-day moving average. With the 50-day moving average reversing the downturn, gold is expected to rise further in near term with resistance at the 200-day moving average of $1,260.
Silver tracked gold, falling 0.2 percent to $17.70 an ounce after rising to $17.79, its strongest since Nov. 11. On chart, silver is still searching for a breakthrough under the 200-day moving average, and is expected to move up further in near term. But in the long run, the 200-day moving average is consolidating, pressured by interest rates hike from the Federal Reserve and winning of Donald Trump in U.S. Presidential election, after one-year recovery since it snapped a four-year downturn in the second quarter of 2016. Within 20 cents to the key technical mark, whether the metal could cross and hold above the 200-day moving average would dominate its future trends.
 

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