Gold

Gold prices slid on Thursday, after it failed to confirm its brief break on Wednesday through $1,200 an ounce, a key psychological level, as the dollar resumed its ascent a day later.

The dollar index rebounded to 95.50, moving off the 50-day moving average of 95. With the dollar stronger again, precious metals priced in the currency slid. Spot gold declined 0.7 percent to $1,187.30 per ounce. Prices hit their highest since Aug. 13 at $1,201.51 in the previous session.

The Fed's latest policy meeting minutes suggested it is on course to raise interest rates further after two hikes this year, denting demand for non-interest-yielding gold. Meanwhile, trade tariffs imposed by the United States and China on each other kicked in on Thursday, benefiting the safe-haven U.S. Currency. Markets are awaiting Fed Chairman Jerome Powell's comments on Friday at the central bank's annual meeting in Jackson Hole, Wyoming for any change in its interest rate stance.

After failing to confirm its brief break through $1,200 an ounce, sentiment remained bearish without effective reversion. Gold prices will be determined by the dollar.

Silver

Spot silver dropped 1.2 percent to $14.56 an ounce, touching $14.49, a one-week low. The white metal failed to track gold’s gains, but posted sharper losses when bullion declined, showing subdued risk appetite. Safe-haven sentiment in the near term will be a major drag on silver prices. Market bulls are recommended to square their positions.

Dealing Room, ICBC Beijing Branch
                       Cheng Yu