Dealing Desk: Hawkish FOMC statement impacts metal prices

This week has seen selling across all metals apart from gold which has remained the favorite this week with GoldMoney's clients.

GoldMoney's Singapore and Hong Kong vaults remained the most popular this week, with UK and Swiss vaults seeing the most selling.

Kelly-Ann Kearsey, Dealing Manager at GoldMoney, says that we have seen more volatility and caution in the markets ahead of the Federal Reserve Policy statement. Precious metals were supported earlier in the week after a decline in consumer confidence was experienced, hinting at economic weakness. FOMC's statement was the significant news of the week. Although rates remain unchanged, a hawkish stance has been taken and there are hints of a rate rise in the December meeting, which has gone against expectations of the event happening in early 2016.

↑ Gold experienced a high of USD 1,181.00/oz this week ahead of the FOMC but then dropped 1% after the Fed signaled a possible December rate hike. As a result, the US dollar hit a two and a half month high and prices have been seen to retreat to the USD1,150.00/oz level. Clients have been taking advantage of this price opportunity and may be using gold as a safe-haven against inflation should the rate rise take effect.

↓ Silver followed gold in price movements with the metal reaching a high of USD16.32/oz before the FOMC, after which it retreated to USD15.80. Positive US data was later released, which pushed the metals lower, prompting clients to sell silver to retain profit.

↓ Platinum and Palladium saw a slightly quieter week. Clients have been selling the industrial metals as platinum was unable to remain at its USD1,000/oz level regardless of the news presented by Toyota unveiling a push into fuel cell cars.

Week on week price performances
29/10/15 16:00. Gold lost 1.6% to $1149.00, Silver fell 1.6% to $15.54, Platinum dropped 1.3% to $988.75 and Palladium fell 1.4% to $670 Gold/Silver ratio: 73


NOTES TO EDITOR
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