Gold
Gold steadied on Monday as weak physical demand in top-consuming regions and the expectation of higher U.S. interest rates weigh, despite the bullion-priced U.S. dollar losing steam. Spot gold lost 0.2 percent at $1,239.11 per ounce.

A lower U.S. currency makes dollar-denominated gold cheaper for holders of other currencies, which typically boosts bullion demand. However, low physical demand in top gold-consuming countries China and India and the continued expectation of the U.S. Federal Reserve to raise interest rates pressured bullion.

India's gold imports fell for a sixth month in June to 44 tonnes as a drop in the rupee lifted local prices to their highest in nearly 21 months, curtailing demand.

Meanwhile, holdings for the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust , have fallen more than 8 percent since late April to less than 26 million ounces, showing fading investor interest in bullion. Gold prices are expected to remain subdued in the near term.

Silver

Silver lost 0.1 percent at $15.77 per ounce. A firmer dollar kept the white metal in check.

On chart, silver had slipped to the lower bank of recent trading range at around $15.70, a level touched many times before. In January, June and February of 2017, silver hit $15.50 before recovering, suggesting strong support at this level. Without sharp losses in bullion, it is expected to regain ground gradually.
 

Dealing Room, ICBC Beijing Branch
                       Cheng Yu