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Gold and Silver Inch down as the U.S. Stocks Rebound Sharply
 

Gold

Gold fell 0.19 percent at $1,231.6 an ounce on Thursday, after Wall Street's major indexes rebounded across the board, up over 1.5 percent with Nasdaq surging 2.95 percent. Both gold and silver remained under pressure as the dollar continued to rise.

U.S. stocks have been entered into the last phase of its bull market, in which a rebound can be expected, but cannot recover the losses. In such circumstances, bargain-hunting will emerge, but usually will fail to post gains. After the exit of capitals, a bear market will show up due to lack of support and extended losses. We believe some large financial institutions will be entrapped into serious crisis soon, and it’s unrealistic to expect that the incoming infrastructure boom can boost the stock market as tech companies once did.

We maintain our view that precious metals are expected to rise in the medium term. But the gains will be limited, and sharp rally on chart can be hardly seen.

Silver 

Silver fell 0.43 percent to $14.61 an ounce. We maintain our view that the bullish trend in silver is less clear than gold, and even remains bearish on chart. Investors are recommended to gradually switch their positions to gold when possible.

 

Dealing Room, ICBC Beijing Branch
                       Zhao Yifei


(2018-10-26)
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