Gold hit a five-month high on Friday after U.S. jobs data dampened expectations that the U.S. Federal Reserve will raise interest rates, but the metal gave up most gains as the dollar rose and safe haven demand ebbed. Gold was also underpinned by investors looking for safety after the United States fired cruise missiles at a Syrian air base, escalating tensions with Russia and Iran. Later in the session, however, safe haven demand faded and the dollar index climbed to three-week highs. U.S. employers added the fewest number of workers in 10 months in March, boosting gold, which is most attractive to investors in a low interest rate environment. Spot gold rose 0.2 percent to $1,253.71 an ounce after touching its highest since Nov. 10 at $1,270.46, putting it on track for a fourth consecutive week of gains. U.S. gold futures climbed 0.3 percent to settle at $1,257.30 an ounce.
On technical front, gold crossed over the 200-day moving average and tested the resistance of $1,264, the highest since February 28. If it could hold above $1,260, further rally can be expected.
Spot silver fell 1.4 percent to $17.97 an ounce, after touching $18.47, the highest since Feb. 27. It was on track for its first weekly loss in four. Technically, silver fell below the 200-day moving average, on track to form a M-top pattern. It is expected to fall in the medium term. But in near term, a rebound is likely as sharp losses could trigger some profit-taking and bargain-hunting. The resistance and support can be found at $18.24 and $17.9215 respectively.

 
Dealing Room, ICBC Beijing Branch
Huang Han

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