Dealing Desk: Hawkish Tone Shakes Market

This week, clients have been net buying in silver and palladium, whilst net selling gold and platinum.

Clients have been speculating the market and have been taking advantage of the price reduction as silver dipped below the psychological level of $17.00/oz

GoldMoney’s clients have favoured the Singapore, Canadian, and London vaults this week with less preference being shown for the Swiss vaults.

Kelly-Ann Kearsey, Dealing Manager at GoldMoney, said that all eyes were on the release of the US Federal Reserve minutes from the April meeting. Gold dropped more than 1% on Wednesday after the release, hitting a spot session low of $1,262.45/oz whilst the US dollar reached a three-week high.

Markets had already priced in the expectations of an interest rate hike this year but the minutes provided a hawkish tone toward raising rates. This implied that the rate hike could be as soon as June, providing that economic data points to a stronger second-quarter growth compared to the 0.5% growth recorded for the first quarter.

On Tuesday, the US Housing starts data and industrial production data was released, which had been strong, potentially giving added support to the early rate hike, as stated by the FOMC.

Platinum prices have remained steady at around $1,000/oz. There is a possible expectation of stronger demand for platinum as it is used in catalytic converters. Due to the recent tighter environment controls, Europe will be applying Euro 6 emissions standards to all new diesel cars.

19/05/16 16:00. Gold lost 1.8% to $1,249.36, Silver declined 5.2% to $16.40, Platinum decreased 4.9% to $1,008.55 and Palladium reduced 6.8% to $561.45 Gold/Silver ratio: 72

Notes to editor
For more information, and to arrange interviews, please contact Emily Cornelius, Communications & PR Tel: + 1 647 499 6748 or email: [email protected]

GoldMoney
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.
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