Kelly-Ann Kearsey and Geoffroy Buffetrille, Dealing Managers at GoldMoney, say:
This week, clients have been selling their precious metals across a varienty of vaults with Singapore proving the most popular for buy orders.
Generally, when there is no surprise, there is no action. Yesterday, the Federal Reserve raised interest rates to 0.25%, as most were expecting. As a result, there was no noticeable market reaction, despite the push of volatility early this week on the US equity market. The VIX eventually started its mean reversal, indicating that the market players were taking a breather and it is perhaps time to look for a Christmas break.
The biggest statement made by the Fed was "gradual adjustments in the stance of monetary policy." This is being taken as a message to show that the status quo given by the Fed will be a gradual raise in rates pending US economic strength in the future.
Despite a quick spike on the gold and silver prices, we were still trading in range within last week's levels of 18 points until the US market came online today and gold was seen testing its support level of USD1,050/oz, as was seen at the beginning of the month. This has also resulted in an increase of the gold-to-silver ratio to 76.
↓ Gold – In light of the US Federal Reserve's statement, many clients were seen selling the yellow metal possibly in speculation of the expected rate rise in order to take advantage of the spikes that were seen earlier in the week.
↑Silver, the more volatile metal, has seen more buyers this week as it has traded below the psychological level of USD14.00/oz and therefore has been seen as a bargain buy.
↓ Platinum and ↑ Palladium were mostly backed by small buy and sell orders this week. In the news, vehical sales in China saw a rise of almost 20%. Platinum and palladium are widely used in pollution controls system such as autocatalysts and may be given more support.
Happy Holidays from the Dealing Desk and wishing all our clients a prosperous 2016
Week on week price performances
17/12/15 16:00. Gold dropped 1.8% to $1,053.35, Silver fell 3.2% to $13.74, Platinum lowered 0.9% to $844.50 and Palladium tose 1.5% to $554.00 Gold/Silver ratio: 76
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 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.
Visit: Goldmoney.com or view our video online