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Gold Slides off Three-month Peak on a Firmer Dollar
 

Gold

Gold eased on Monday, sliding off a more than three-month peak in the previous session, pressured by a strong dollar and as investors returned to riskier assets following a recent sell-off in global stocks. Spot gold was down 0.6 percent at $1,225.71 per ounce. U.S. gold futures settled down $8.20, or 0.7 percent, at $1,227.60.

With the dollar strength, it is hard for gold to see any rally. After rising to the highest within the year, the dollar index is very likely to poke over the key mark of 97. Prospects for higher U.S. interest rates also made investors more cautious in holding the non-interest-bearing bullion. Despite the volatility we have seen in equities (on Monday) if gold is still down so much, it shows that the flight to safety is not going into gold but the dollar.

On the technical front, gold lingered around 1,230. Immediate support stood around $1,220, the 100-day moving average, then the upper band of previous trading range at $1,210. Investors can hold their long positions in the near term.

Silver

Silver fell 1.3 percent to $14.42, still within previous trading range, showing less appetite for riskier assets. Investors shall closely watch the support at the 50-day moving average at $14.50, then the key mark of $14.

 

Dealing Room, ICBC Beijing Branch
                       Cheng Yu


(2018-10-30)
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