This week, clients have been selling larger values of all precious metals, possibly speculating ahead of the ECB meeting on Thursday and taking advantage of the higher prices seen through the week.
Conversely, we have seen a lot of buying by clients taking advantage of the price dips seen over the week.
GoldMoney’s clients have preferred the Singapore and Canadian vaults this week, with less favour being shown for the London and Swiss vaults.
Kelly-Ann Kearsey, Dealing Manager at GoldMoney, says prices have remained relatively stable this week with the exception of a slight price drop experienced on Wednesday due to rising oil prices, world stock markets, and expectations that the European Central Bank would be increasing its monetary easing.
The market is also waiting the outcome of the US Federal Reserve meeting next week; however, economic data from major economies suggests that growth is losing its momentum.
The ECB announced on Thursday that it would launch three interest rate cuts and increase the Quantitative Easing to EUR80bn a month. It has stated it will buy corporate bonds for the first time under an asset-buying programme and interest rates are looking to stay low and may be cut after 2017.
In light of this announcement, the Euro unexpectedly surged, resulting in a positive reaction for gold, pushing the price higher.
Over the next week, the market will be waiting for the US Federal Reserve on Wednesday and will be awaiting the results of data from the US including Retail Sales and the Producer Price Index Final Demand (PPI-FD).
03/03/16 16:00. Gold gained 0.8% to $1,267.11, Silver increased 2.9 % to $15.57, Platinum rose 4.4% to $989.20 and Palladium gained 12.4% to $569.97 Gold/Silver ratio: 81
NOTES TO EDITOR
GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for private and corporate customers, allowing users to buy precious metals online. The easy to use website makes investing in gold and other precious metals accessible 24/7.
Through GoldMoney's non-bank vault operators, physical precious metals can be stored worldwide, outside of the banking system in the UK, Switzerland, Hong Kong, Singapore and Canada. GoldMoney partners with Brink's, Loomis International (formerly Via Mat), Malca-Amit, G4S and Rhenus Logistics. Storage fees are highly competitive and there is also the option of having metal delivered.
GoldMoney currently has over 20,000 customers worldwide and holds over $1billion of precious metals in its partner vaults.
GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.
Visit: Goldmoney.com or view our video online