The strikes in South Africa dominated precious metals market news this week as at first it appeared a conclusion to the long running strikes was not going to be reached. Gold bulls also returned to the market, however these metals weren’t the focus for GoldMoney customers who turned their attention to silver.
Head of Dealing and Settlements at British based GoldMoney, Roland Khounlivong said: ‘We saw the gold price jump this week as some of the bulls returned to the market amid the escalation of violence in Iraq and to bargain hunt with some of the lowest prices this year. Our customers didn’t follow the trend, but instead took profit on gold and we saw heavy interest in silver due to its relative low price in comparison.
‘The gains made by platinum and palladium this week are being wiped out, especially for palladium which had been gaining on fears that the South African strike was nowhere near a resolution. Today’s news that an agreement in principle has been reached is the catalyst for the price pull-back.
‘During the week GoldMoney customers bought some platinum in rising trading volumes overall which jumped 24% on last week. This is sustained activity which we haven’t seen for some weeks, and follows on from last week’s 46% jump in trading activity from the previous week. There was also a 15% jump in buyers compared to sellers as customers came off the fence.
‘Geographically we are still seeing a continuation of the west to east flow, with most of the new silver orders going into our Malca-Amit vault in Singapore, and gold being sold out of Switzerland.
‘Next week sees the quadruple witching and also the Federal Open Market Committee meeting on 18th June could provide further volatility.’
16:00 12/06/14: Week on week performance: Gold gained 1.5% to $1,272.01; Silver added 2.2% at $19.43; Platinum rose 0.5% to $1,439.50 while Palladium fell 1.3% to $824.80.
NOTES TO EDITOR
GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.
GoldMoney has offices in London, Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.
Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 60 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar.
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