Gold prices fell on Monday, but still lingering around $1,200 an ounce. An expected U.S. interest rate hike continued to weigh on the precious metal, but political risks in Europe provided safe-haven support. With a rate increase by the Federal Reserve seen as a done deal, investor focus is shifting to what message the U.S. central bank will deliver when it concludes its meeting on Wednesday. Any divergence between Fed’s statement and market expectations would trigger violent changes in gold prices, which are likely to see a turning point after bearish news has been fully priced in. Investors of low risk appetite may cut their positions, while aggressive investors shall also set stop-loss and strictly follow investment rules.
On technical front, both the MACD and momentum index suggest strong downward momentum. Still remaining rangebound, gold could find support and resistance at $1,190 and 1,220 respectively.
Silver slid, but still lingering around $17 an ounce. Technically, the MACD and momentum index still pointed to a bearish tone. As silver usually swings more sharply then gold, investors shall be more cautious in silver investment before "risk events" this week. The support and resistance can be found at $16.60 and 17.40 respectively.

 
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Yang Hui

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