Dealing Desk: Precious Metals Weighed Down on Fed Hawkish Statement

This week, clients have preferred purchasing silver to gold and have been seen exchanging their gold for silver.

Many clients were seen seen buying precious metals on Tuesday and Wednesday after taking advantage of the price drop.

GoldMoney's clients have favoured the Singapore and London vaults this week, with less favour being shown for the Swiss and Hong Kong vaults.

Kelly-Ann Kearsey, Dealing Manager at GoldMoney says that less market data has been released this week due to the upcoming Easter break; however, precious metals have endured an exciting week with gold seeing a price increase of 0.7% on Tuesday followed by dropping to its lowest levels in nearly four weeks as the US Dollar strengthed, despite possible safe haven support following the terror attacks in Brussels.

Last week, the FOMC took a more dovish approach and lowered expectations from four rate hikes to two. A top Fed Official made an announcement on Tuesday that rate-setters should consider renewed policy tightening as soon as next month, due to the US's strong labour market, which could filter through into inflation.

Chinese data has also shown that platinum and palladium have been imported into the country. China's levels show almost twice as much of the industrial metals as this time last year. It appears that industrial users of the metal, including auto makers, have been taking advantage of the drop in price experienced earlier in the year.

24/03/16 16:00. Gold lost 3.5% to $1,220.11, Silver decreased 4.7 % to $15.24, Platinum dropped 3.7% to $953.20 and Palladium lowered 2.9% to $573.20 Gold/Silver ratio: 80


NOTES TO EDITOR
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