The decision by the Indian government to drop an expected reduction in gold import duties has left the market for the yellow metal static this week.
The government was widely expected to follow-up an election issue by dropping the high import duty – a move that would have had a significant impact on gold prices, given that India is the world's largest consumer of the metal. The last week or two have seen investors holding back in anticipation of a change in policy and an increase in demand, but following Monday's decision, eyes have turned instead to a raft of data expected from the US, China and Europe over the coming seven days.
The mixed position of the last seven days is best reflected by results on gold – although there has been net selling overall in terms of monetary value, the majority of the orders has been on the side of buyers. The most popular vault has once again been the Brinks vault in Singapore. Today's European Central Bank (ECB) announcement about a fresh quantitative easing programme has done little to add clarity to the position.
GoldMoney dealing manager Kelly-Ann Kearsey said, 'What we've seen over the last seven days is effectively a static position for gold, which has pushed investors to look at other opportunities –Palladium has been our best performer in terms of price, week-on-week.
'The decision in India about gold import duty has perhaps forced a rethink on the part of those investors who were holding back in anticipation of a demand jump.
'What we're seeing now is a more balanced picture – there has not been too much movement in the gold price week-on-week.
'There is a set of major figures coming out over the next seven days, including Euro Monetary Union GDP data and US international trade data both due tomorrow. Early next week we will also see Consumer Price Index and Producer Price Index data for China, as well as Industrial production stats for China on Wednesday.'
Week on week price performances
5/03/15 16:00. Gold down 0.2% at $1,205.90, Silver down 1.8% to $16.27, Platinum gained 0.9% to $1,187.10 and Palladium rose 2% to $824.65.
NOTES TO EDITOR
For more information, and to arrange interviews, please call Gwyn Garfield-Bennett on 01534 715411, 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, 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