It's been a quiet week for online bullion dealer, GoldMoney, despite warnings about a global economic slowdown.
Gold is traditionally seen as a safe haven asset, but GoldMoney's Dealing Manager, Kelly-Ann Kearsey said despite some small price increases week on week, that sentiment is not providing much support to the metal at present, 'We've seen net selling in gold and silver this week from our customers, although they have been small orders, nothing large scale. The fact the US Consumer Price Index year on year has come in under the Federal Reserve Bank's target has added to Fed expectations that inflation pressures have lessened. That in itself has weakened gold's hedge value.
'The selling we've seen has mostly been out of our UK and Swiss vaults, with Singapore, as usual, the beneficiary. It is unusually quiet for November, and the Swiss referendum might be partially responsible. The 'Save our Swiss gold' proposal to make the Swiss National Bank hold at least 20% of its assets in the precious metal, will go to the polls in ten days. If the Swiss do vote in favour it will have an impact on the market as the Swiss bank will need to buy large amounts of gold. For now it's wait and see.
'Gold has stayed below its key US$1200 resistance level with geopolitical risk factors not currently impacting the market. With the Christmas holiday period approaching, when markets are going to quieten down further, gold looks to be keeping out of the spotlight for the next few weeks.'
16:00 20/11/14: Week on week performance: Gold rose 2.2% to $1,188.00; Silver gained 3.3% to $16.14; Platinum added 0.1% to $1,200 while Palladium put on 2.1% to $767.00.
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 currently has over 22,000 customers worldwide and holds $1.2billion of precious metals in its partner vaults.
GoldMoney has offices in 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.
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.
Follow the GoldMoney Dealing desk team on Twitter: @goldmoneyupdate