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Gold Climbs back as Lackluster U.S. Economic Report Dampens Dollar
 

Gold

Gold rose on Friday, climbing back toward the previous day's 17-month peak as a report of slow economic growth pushed the U.S. dollar lower, days after the greenback was hammered by a senior U.S. official backing a weaker currency. The dollar was on track for its biggest weekly decline since May.

Spot gold was up 0.3 percent at $1,351.86, up 1.5 percent this week. On Thursday, bullion hit $1,366.07, its highest since August 2016. U.S. gold futures for February delivery settled down $10.80, or 0.78 percent, at $1,352.10 per ounce.

We maintain our view that solid fundamentals in the world's largest economy runs against the dollar index at historic lows. Gold bounced off highs on Friday, showing losing steam in strength. Investors are recommended to cash in profits due to mounting risks.

Silver

Silver was up 0.7 percent at $17.42 an ounce. On Thursday, silver touched $17.69, its highest in more than four months. It was strongest weekly rise among precious metals, up 2.4 percent from last Friday's close.

On trading strategy, we maintain our view that silver will gradually pull back as the dollar index steadies and bottoms up. Investor are recommended to sell at highs and buy on dips during the process.

 
Dealing Room, ICBC Beijing Branch
                       Huang Han


(2018-01-30)
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