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Gold Slides to Three-week Low on a Firmer Dollar and Stock Market Rebound
 

Gold

Gold fell to a near three-week low on Wednesday as the dollar scaled a 16-month peak and a stock market rebound stirred renewed appetite for riskier investments. Spot gold was down 0.8 percent at $1,213 per ounce, having touched its lowest since Oct. 11 at $1,211.52. U.S. gold futures settled down $10.30, or 0.8 percent, at $1,215.

In the near term, gold is very much driven by the risk environment, the equity market performance and the strength of the dollar. The dollar index climbed to its highest level in 16 months while stock markets bounced after a brutal October.

On the technical front, gold poked over the 100-day moving average, seeking the support of the 50-day moving average at $1,210. The key mark of $1,200 shall be closely watched, as a new wave of decline would be triggered if the support is breached.

Silver

Silver fell 1.2 percent to $14.3 an ounce, hitting the lowest since October 10 at $14.2 during the session, in line with market expectations. The white metal is very likely to fall back to the key mark of $14 in the near term.

 

Dealing Room, ICBC Beijing Branch
                       Cheng Yu


(2018-11-01)
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