Gold
Gold prices rose on Wednesday as the dollar fell on weak U.S. economic data ahead of the U.S. Federal Reserve minutes of its latest meeting. Spot gold was up 0.9 percent at $1,292.32 ounce.

The dollar fell against a basket of currencies, and prices for U.S. Treasuries slipped after new orders for key U.S.-made capital goods unexpectedly fell in October. Many Federal Reserve policymakers expect that interest rates will have to be raised in the "near term," according to the minutes of the U.S. central bank's last policy meeting released on Wednesday. While many of the officials said weak inflation report will pull long-term inflation down as U.S. inflation is expected to remain below its 2 percent target for longer than expected.

After the release of the U.S. Federal Reserve released minutes, the Fed is almost certain to raise interest rates next month. But difference among policymakers on the path of rates hike showed concerns over stock market. The dollar fell to its lowest level since October against a basket of major currencies, boosting bullion. In case of failure by President Donald Trump in enforcing his tax overhaul, safe-haven demand will be triggered that will send gold higher.

On technical front, gold remained within the trading range since October with next resistance at $1,296. On the one hand, market expectations for interest rate hike next month and future policy direction came against bullion. On the other hand, hovering safe-haven demand continued to lift gold. Investors are recommended to stay on the sidelines for clear signal before building positions.

Silver

Silver was up 1 percent at $17.11 an ounce, remaining around the midpoints of the trading range between $16.5 to $17.5. On trading strategy, investors shall follow that of gold due to lack of direction and low volatility.

 
Dealing Room, ICBC Beijing Branch
                       Qin Gang

                                  
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