Dealing Desk Update: FOMC meeting puts the brakes on gold profit taking

The start of this week saw GoldMoney customers following on from last week's profit taking spree on gold, but Wednesday's Federal Open Market Committee (FOMC) gave them a reason for a U-turn.

Head of Dealing at the online precious metals trader, Roland Khounlivong, said: 'We saw a 62% increase in gross traded volume compared to last week with some big value sales from High Net Worth individuals who were cashing in on the rise in gold. Once the FOMC meeting confirmed a more dovish stance and the likelihood that rates will not rise as the market had first thought, our customers put the brakes on their selling.

'With quantitative easing likely to continue for some time, the renewed 'safe-haven' status of gold should see some interesting buy orders in the coming weeks.

'The sell-off was across all the GoldMoney vaults, apart from a small positive influx at Brink's, Canada. Although it was a profit taking week in terms of value, there were still more individual buyers than sellers.

'In terms of the gold/silver ratio, this now stands at 65.50 which makes silver an interesting opportunity relative to gold. With the next week shorter than usual ahead of the Easter weekend we see the only significant data on Wednesday with Chinese GDP.'

GoldMoney has more than 22,000 customers, and stores $1.4bn of precious metals for its customers worldwide.

16:00 10/04/14: Week on week prices: Gold rose 2.6% to $1,319.86; Silver gained 1.5% to $20.15; Platinum added 1.4% to $1,455.24 while Palladium gained just 0.3% to $789.50.

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NOTES TO EDITOR

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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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