Gold prices ended little changed on Monday as expectations that the Federal Reserve will press ahead with interest rate rises offset concerns over political tensions in North Korea and the Middle East. Fed Chair Janet Yellen struck a cautious note, saying it would be appropriate to gradually raise rates if the economy continued to perform strongly. Spot gold was up 0.04 percent at $1,254.06 an ounce. On Friday, the metal rose above $1,270 on Friday for the first time since early November following much weaker than expected U.S. jobs data, and after the United States launched a missile strike on a Syrian air base. U.S. Secretary of State Rex Tillerson warned that the strikes were a warning to other nations, including North Korea.
On technical front, gold is trading just above its 200 day moving average of $1,235, a strong retracement support, after rallying for a fourth month. With Bollinger upper band expanding upward and the MACD retaining upturn momentum, gold is expected to breach the resistance of the 50-day moving average at $1,258 after two failed tests.
Silver prices fell 0.2 percent to $17.93 an ounce after hitting $18.47, the highest since February 27. Technically, the MACD index moved below the axis zero and a dead cross is formed after the metal crossed below the 200-day moving average on Friday. The K-line lingered around the 20-day moving average, a ground lost during one point on Monday, suggesting a bearish tone. Diverging from gold, silver is expected to fall further if it slipped below $17.9.

 
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