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Gold Rises on Weak U.S. Jobs Data
 

Gold

Gold rallied 1 percent on Friday, after falling to the lowest in nearly 17 months when weaker-than-expected U.S. jobs data pushed the dollar lower and a move by the Chinese central bank lifted its currency.

Spot gold was up 0.60 percent at $1,214.79 an ounce, after rallying 1 percent to $1,220.01. Earlier it dropped to $1,204, the lowest since March 15, 2017. U.S. gold futures settled up 0.3 percent at $1,223.20 an ounce.

We believe that the move up is temporary here due to the miss in the jobs number. The dollar index turned negative after data showed U.S. job growth slowed more than expected in July. Earlier, the dollar had climbed to a two-week high against a basket of major currencies and scaled a 14-month peak versus the Chinese yuan. China's offshore yuan also reversed, rising sharply after its central bank acted to curb short selling of the currency.

Spot gold, which was on track to close the week down 0.3 percent, its seventh weekly decline in the past eight, may fall toward the next support at $1,194, as it has resumed its downtrend from $1,309.30, according to Reuters technical analyst Wang Tao.

Silver

Silver rose 0.7 percent to $15.41 an ounce, its eighth weekly decline in a row. We maintain our view that silver will keep trading in a tight range with support and resistance at $15.20 and $15.90 respectively.

 

Dealing Room, ICBC Beijing Branch
                       Li Nan


(2018-08-06)
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