Gold fell to a one-month low as the dollar firmed on Wednesday, after the U.S. Federal Reserve kept interest rates unchanged as expected and the market reduced expectations of a surprise win by France's far-right presidential candidate. The Fed concluded its two-day meeting with a bullish statement that downplayed weak first-quarter economic growth, said inflation has been "running close" to its target, and emphasized the strength of the labor market, in a sign it could tighten monetary policy as early as June. Spot gold was down 0.8 percent at $1,246.76 an ounce, after falling below the 50-day and 200-day moving averages and touching its lowest since April 5 at $1,244.93.
On technical front, gold crossed below the 50-day and 200-day moving average successively to close at $1,237.80. The MACD index showed a bearish tone, suggesting heavy downward pressure. The support can be found at the 100-day moving average of $1,221.
Silver was down 1.4 percent at $16.567 per ounce, after touching the lowest since January 11 at $16.48. It was on track for its most technically oversold level on the 14-day relative strength index since November 2014, suggesting a new wave of technical pullback. With the resistance of $16.70 breached, downward pressure mounted in near term. Support can be found at the key mark of $16.

 
Dealing Room, ICBC Beijing Branch
Li Nan

Note: The information herein is provided for informational purpose only. You are liable for the risk incurred to the investments based on this information provided herein.