Home >News Updates >Financial News >ICBC Daily Comment
The Dollar About to Form a Medium-Term Double Top, Bull Market Is Expected for Gold and Silver
 

Gold

Gold rose 0.67 percent at $1,230.17 an ounce on Tuesday, as global stock markets tumbled, adding to bullion's appeal. The yellow metal once rallied 1.44 percent before paring half of its gains as U.S. stocks rebounded sharply late in the session.

On gold’s momentum, we maintain our view, “Both the dollar and gold show some remarkable signs on chart, with the dollar index about to form a double top and bullion accumulating sufficient upward momentum after more one-week consolidation. On fundamentals, U.S. stocks still hold above previous lows after a four-day losing streak, and the capital market is still in an orderly exit pattern.

A headwind is that gold’s closing price failed to breach above the upper-band of the previous trading range on Tuesday, suggesting an effective breakthrough is still some way ahead. A bull market is basically formed, but correction is still likely today.

Silver 

Silver rose 1.28 percent to $14.72 an ounce. Despite of paring less gains than gold, the white metal also has not built an effective breakthrough. We main our view that the bullish trend in silver is less clear than gold, and even remains bearish on chart. Investors are recommended to switch their positions to gold when possible.

 

Dealing Room, ICBC Beijing Branch
                       Zhao Yifei


(2018-10-24)
Close