Gold

Gold edged up 0.1 percent to $1,223.46 an ounce, having hit a one-week low of $1,216.93, and was on track for its third consecutive weekly decline, of about 0.5 percent.

The dollar slipped against a basket of currencies on Friday as data showing the U.S. economy rang up its strongest quarter in nearly four years failed to erase worries that trade frictions would be a drag in the second half of 2018. Soybean exports have been a bright spot in the U.S. Economy.

As reported by the Commerce Department’s Bureau of Economic Analysis, U.S. gross domestic product grew at a 4.1 percent pace in the second quarter, matching a Reuters poll of economists. The PCE price index increased 1.8 percent, compared with an increase of 2.0 percent in economists’ forecast. Excluding food and energy prices, the core PCE price index increased 2.0 percent, compared with economists’ forecast of 2.2 percent. The preliminary sales rose 5.1 percent, beating market consensus of an increase of 3.7 percent. Consumer spending rebounded to a 4 percent annual growth rate. GDP deflator index added 3.2 percent, better than the forecast of a 2.3 percent growth.

After the report, U.S. stocks slipped, while benchmark 10-year notes bounced off a 1-1/2-month high. On chart, gold will continue to fall, and could find support at $1,205-$1,215 and resistance at $1,235.

Silver

Silver rose 0.5 percent at $15.45 per ounce, but was heading for its seventh weekly decline. It earlier hit a one-week low at $15.29 an ounce.

On chart, silver, under heavy resistance, keeps falling along the 10-day moving average. Investors shall closely watch the support at the closing lows of July 19 at $15.26. The next support can be found at $15.

Dealing Room, ICBC Beijing Branch
                       Lv Yan