Gold rallied to the highest level in nearly three weeks on Tuesday, extending its gains starting from last Wednesday with resistance at the 200-day moving average of $1,260. On fundamentals, French centrist presidential candidate Emmanuel Macron cemented his position as the front-runner in the French presidential race in the first televised debate on Monday versus anti-European Union contender Marine Le Pen, reducing the dollar’s safe-haven appeal and offering upward momentum to bullion. Gold prices were also underpinned by uncertainty over President Donald Trump's policy direction. Holdings of the largest gold-backed exchange traded fund, New York-listed SPDR Gold TrustGLD rose 0.50 percent to 834.40 tonnes from 830.25 tonnes on Monday. Investors bought in gold once again.
On technical front, we maintained our view that gold is more likely to retain its steam despite of a consolidation in near term for direction. Support and resistance can be found at $1,200 and $1,250 respectively. The movement around the 200-day moving average of $1,260 shall be closely watched.
Silver tracked gold. The movement at around the 50-day moving average of $17.50 shall be further confirmed. On technical front, the white metal, under the pressure of the 50-day moving average of $17.50, would rise all the way to the 200-day moving average of $18.05 if the level is breached above. The support can be found at the key mark of $17.

 
Dealing Room, ICBC Beijing Branc
Cheng Yu

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