Gold edged up on Wednesday, hovering below Monday's one-month high as uncertainty about Brexit talks, French elections and U.S. President Donald Trump's economic policies boosted safe-haven buying and offset a firmer dollar. Spot gold was up 0.05 percent at $1,252.2 an ounce. British Prime Minister Theresa May filed formal Brexit divorce papers on Wednesday, triggering years of negotiations. The dollar extended gains for the third straight day after several policymakers’ comments, capping gold’s gains. Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, reported an outflow of 1.8 tonnes on Tuesday. Uncertainty in Europe with French elections coming up in 3 weeks also provided some support.
Gold failed to breach the peak at $1,263.80 following the Federal Reserve’s dovish move in raising interest rates. On the one hand, most policymakers supported two more U.S. rate hikes this year. On the other hand, uncertainty in French elections will come up at the end of April or early May. Bullion is expected to trade between $1,220 and $1,260 in near term.
Silver rose 0.2 percent to $18.19 an ounce after hitting $18.24, the highest since March 2. Overall, silver would track gold to trade in rangebound in near term. Technically, the white metal could find strong resistance around $18.5. Nearing the upper band of Bollinger band, silver is likely to pull back in the coming sessions.

 
Dealing Room, ICBC Beijing Branch
Qin Gang

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