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Gold Steadies as Dollar Weakness Offsets Improving Risk Appetite
 

Gold

Gold held steady near 2-1/2-month highs on Tuesday as dollar weakness offset improved risk appetite among investors, reflected in recovering global stock markets. Spot gold was unchanged at $1,226.29 per ounce, having peaked at $1,233.26 in the previous session, its highest since July 26. U.S. gold futures settled up $0.7, or 0.1 percent, at $1,231 an ounce.

Holdings of SPDR Gold Trust, the largest gold-backed exchange traded fund, rose for a second straight session on Monday, adding 4.1 tonnes. Holdings have gained about 2.5 percent in the past seven days, which, some analysts said, is a shift in perception in sentiment among gold ETF investors.

The Saudi situation seems to be on the mend, adding to a weaker dollar in drive up this round of rally. On the technical front, gold prices were trading around the 100-day moving average of $1,227. Gold is expected to trade between the 100-day moving at $1,200 and the 100-day moving average at around $1,227.

Silver

Silver was down 0.1 percent at $14.64 an ounce, having touched its highest since Oct. 2 at $14.85 earlier in the session. We maintained our view that the white metal poked above the key resistance of the 50-day moving average, and the weekly K-chart also rose above the 10-week moving average, forming a golden cross with the 5-week moving average that suggests a new wave of rally in the medium term.

Dealing Room, ICBC Beijing Branch
                       Huang Han


(2018-10-17)
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