Gold

Gold fell to a more than 18-month low on Wednesday as the dollar climbed towards its highest in over a year on concerns about global market contagion triggered by recent declines in the Turkish lira. Spot gold lost 1.37 percent at $1,177.32 per ounce, after hitting its lowest since early January 2017 at $1,174.35.

The story for gold is very much about dollar strength and emerging market weakness. This is happening in an environment where the dollar is looking very strong relative to other currencies.

We believe that bargain-hunting shall be avoid as gold’s slowdown shows no signs of reversing on chart. Investors are recommended to stay on the sidelines till precious metal bottom up as the dollar’s strength came to a halt and emerging markets recovered.

Silver

Spot silver lost 3.3 percent at $14.46 an ounce after falling to its lowest since February 2016, at $14.32. The white metal tracked gold and is expected to remain weak with support at $13.8.

Dealing Room, ICBC Beijing Branch
                       Qin Gang