Dealing Desk: All Eyes on FOMC Speech for Market Decision

Aug 26, 2016·Kelly-Ann Kearsey

This week, clients have been net buying gold and silver.

Week on week, the volume of orders seen have been higher than last week; this will most likely be due to the lower pricing of precious metals ahead of the FOMC statement, which has prompted Clients to buy at lower price than previously seen over the past few weeks.

Goldmoney Wealth’s clients have favoured the Singapore, Swiss, and London vaults this week with less preference being shown for the Hong Kong and Canada vaults.

Kelly-Ann Kearsey, Dealing Manager at Goldmoney Wealth said this week has seen gold reach a 2-week low of £1,317.46 alongside silver which reached a 7-week low of $18.77/oz. This could be due to the pressures caused by the FOMC, as upbeat comments were made by the officials on the US economy which boosted expectations that there could be a rate increase by the end of the year. Gold can be sensitive to rising US interest rates as it boosts the opportunity cost of holding gold whilst raising the US dollar against which it is priced.

The US dollar has been trading higher on speculation of FOMC rate hike and ahead of the much anticipated speech from Janet Yellen on Friday who will provide an outlook for September.

China had cut bullion imports from Hong Kong in July due to high global prices but there has been a falter in the stabilization of the Chinese economy as July figures for factory output, retail sales, and investment have all slowed.

With the price decreases seen this week, silver experienced a sharper decline than gold, which has amended the gold-to-silver ratio back up to 71 from 68.

25/08/16 16:00. Gold dropped 2.1% to $1,322.11, Silver decreased 6.0% to $18.59, Platinum declined 4.3% to $1,077.80 and Palladium fell 4.5% to $682.00 Gold/Silver ratio: 71

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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 25,000 customers worldwide and holds over $1.6 billion of precious metals in its partner vaults.
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