Dealing Desk: Prices rise but bullion investors go tactical

Gold prices have risen this week before setting back to exactly the same price as they were this time last week.

At GoldMoney, customers have been selling in a week that has seen their trading volumes fall by 45% on last week.

Gold Sales
Chinese buyers coming back into the market after their week long Lunar holiday helped boost the yellow metal's prices. Dealing Manager Kelly-Ann Kearsey says they've seen net selling in terms of value, 'I think our customers are being pro-active in the market. The latest thought process coming out of the Federal Reserve in the USA is that although a rate rise isn't imminent, it is being considered on a month by month basis. It could happen sooner rather than later. A rate rise will give strength to the dollar and usually hits the gold prices. Some GoldMoney customers are selling while prices are above the critical $1200 level, in the anticipation that they can buy back more cheaply in a few months.'

Value not Quantity
However, Kelly-Ann said, 'Although we have seen net selling in terms of value, there are still more buyers than sellers for gold, showing that overall sentiment remains positive for bullion buying. We have also seen a continuation of the trend for the selling to be out of UK and Swiss vaults, into our eastern locations such as Singapore.'
The chart below shows how the ratio of buyers to sellers has changed over the week.

Ratio Chart

Platinum and Palladium
Platinum is still below the $1200 support level, despite rising car sales in Europe, while the Palladium price is seeing some support. 'Both platinum and palladium are still viewed as industrial metals,' says Kelly-Ann, 'With platinum being used mostly in diesel cars and the desire to cut air pollution meaning that diesels are falling out of favour, this could be hitting its price. Concurrently rising car sales in the US and China where petrol is the favourite fuel, could be supporting palladium.'

Week on week price performances
26/02/15 16:00. Gold no change at $1,208.50, Silver up 0.9% to $16.57, Platinum gained 0.9% to $1,176.99 and Palladium rose 3.6% to $808.20.

NOTES TO EDITOR

For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, or email This email address is being protected from spambots. You need JavaScript enabled to view it.

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, 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

What To Read Next