Gold

Gold rose 0.52 percent at $1,311.24 per ounce, in line with our expectations. U.S. shares steadied after opening lower, sending the dollar index lower.

We said yesterday that “The dollar index will be determined by the Wall Street, that will not turn sour in real sense unless U.S. stocks stabilize. Gold bulls can find two tailwinds within the day. First, the dollar would pull back in the near term. But most gains out of it are expected to lose ahead of the morning bell of the Wall Street, while $1,300 will be tested afterwards. Second, Wall Street opens steadily.” In real world, gold and silver softened soon after the morning bell the Wall Street, but steadied later along with the stock market, largely falling into our estimates.

Gold is expected to rebound further as the dollar’s correction would continue in anticipation of steady and resilient U.S. shares.

Silver

Silver was up 0.24 percent at $16.40 an ounce. It followed the previous session’s trajectory, recouping most losses after Wall Street opened lower, in line with our forecast. We maintain our view that silver is expected to see remarkable rebound in the coming sessions.

 
Dealing Room, ICBC Beijing Branch
                       Zhao Yifei