This week, clients have been net buying gold and silver, taking advantage of the lower prices as the market eagerly awaited the results from the Bank of England this afternoon, together with US data, which would then give more direction to the timing of the US interest rates.
Goldmoney Wealth’s clients have favoured the Swiss and Singapore vaults followed by the London vault this week with less preference being shown for the Hong Kong and Canadian vaults.
Kelly-Ann Kearsey, Dealing Manager at Goldmoney Wealth said this week has seen a downfall in the precious metal prices as gold came close to the lowest level in nearly two weeks and silver fell below $19.00/oz. Gold dropped close to $1,310.00/oz.
The focus of the market today was the Bank of England, with the market looking at whether monetary policies would be eased or remain the same; there were signs that they had overestimated the initial shock of the Brexit referendum. The Bank of England announced that rates would remain at 0.25%. Following this, the market’s next focus will be the two-day FOMC meeting next week to discuss interest rates further.
US data released today included Retail Sales, which were expected to decline. The data showed a possible deceleration of the economy but could also keep the Fed from hiking rates for a longer period. Industrial production was also forecast to decline and job growth also saw a slowdown.
The weak reports from today could encourage the FOMC to keep their rates unchanged.
Week on week, gold was the best performer after a loss of 1.8% after the only metals falling. This has amended the gold to silver ratio up to 69.
08/09/16 16:00. Gold increased 2.3% to $1,344.61, Silver jumped 5.1% to $19.75, Platinum rose 3.9% to $1,088.00 and Palladium added 3.7% to $686.47 Gold/Silver ratio: 69
NOTES TO EDITOR
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