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Gold Rises Boosted by Technical Outlook
 

Gold

Gold rose on Thursday as renewed weakness in global stock markets spurred investors to seek refuge in bullion, which has also been helped by an improved technical outlook. Spot gold rose 0.3 percent to $1,226.11 per ounce . U.S. gold futures settled up $2.7, or 0.22 percent, at $1,230.10 an ounce.

U.S. stocks fell on Thursday as weak earnings reports from industrials raised worries over rising expenses and the impact of tariffs, adding to concerns of higher borrowing costs after hawkish commentary in the U.S. Federal Reserve's minutes.

On technical front, gold was kept below the 100-day moving average at around $1,227, after multiple failed tests. We maintain our view that gold is expected to trade between the 100-day moving at $1,200 and the 100-day moving average at around $1,227, with the next support at $1,215.

Silver

Silver was down 0.2 percent at $14.59 per ounce, having earlier touched its lowest since Oct. 11 at $14.41. Prices recovered after hitting of the 50-day moving average of $14.50, reaffirming the support at this level. We maintain our view that a new round of rally will kick off after consolidating at the same level.

 

Dealing Room, ICBC Beijing Branch
                       Huang Han


(2018-10-19)
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