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Gold edged higher Thursday on mounting safe-haven sentiment in response to uncertainty about the outcome of a tight U.S. presidential race. Spot gold settled up 0.5 percent to $1,303 an ounce. Democrat Hillary Clinton narrowed her lead over Republican rival Donald Trump according to the updated polls. Some even indicated that Trump took a read over Clinton just 5 days ahead of the Nov. 8 election. Clinton's national lead over Trump eroded to 3 percentage points among likely voters in a New York Times/CBS News poll on Thursday, down from 9 points just two weeks ago. Most surveys showed Clinton’s lead over Trump well below that of end-October. It is expected that gold prices will remain sensitive to the U.S. presidential polls in the short run. The market will now focus on the government's non-farm payrolls data, which is forecast at 173,000.
On chart, gold steadied above the 50-day moving average, with technical indicators still boosting gold’s rally. The resistance of previous highs at $1,307 is expected to be breached. But its gains will be limited due to failed test over the 100-day moving average after recent gains and cautious sentiment ahead of the presidential election and non-farm payroll due Friday. Gold is quite likely to trade between the 50-day and 100-day moving average.
Silver fell 0.7 percent at $18.32 an ounce after trading in a wide range between the 50-day and 20-day moving average. Pressured by the 50-day moving average, it closed at around the level for three days in a row, and is expected to turn to losses if it fails to breach the resistance of the range between the 50-day and 100-day moving average in this round of rally led by gold. The white metal opened below the 50-day moving average this morning. Investors shall closely watch whether it could hold above $18.5 at close.
Dealing Room, ICBC Beijing Branch
Lv Yan
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.
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