It has been a quiet but interesting week on the precious metals market. GoldMoney customers followed the general trend and the online precious metals dealer saw its trading levels drop by around 40%.
Head of Dealing at Goldmoney, Roland Khounlivong, said the trading levels were quite typical ahead of a long weekend: 'The prices of all the precious metals dropped this week, apart from Palladium which is up by around 10% on the year which is the best performance of all the precious metals for the year so far. Generally the market is risk averse ahead of a holiday period and even the Chinese GDP and US Consumer Price Index figures topping their forecasts weren't enough to move the hesitant market.
'We saw some significant buying for Palladium however, which fits with the general market mood. Palladium is now approaching its highest level since February 2011 with the geopolitical risk in Ukraine threatening the main production supply chain from Russia. In addition, the strikes in South Africa and the demand for palladium for use in catalytic converters in the automobile industry, are creating fears of a supply/demand mismatch in the future.
'For gold and silver it was more of a week of profit taking, and there were more sellers than buyers in the quiet trading which is the first time we've seen that this year. I expect next week to be similar.'
16:00 16/04/14: Performance since 10/04/14: Gold fell 1.4% to $1,301.02; Silver lost 2.9% to $19.56; Platinum dropped 1.6% to $1,432.05 while Palladium gained 1.1% to $798.10
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 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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