Dealing Desk: Precious metals gain strength as USD weakensFeb 4, 2016·Kelly-Ann Kearsey
This week has seen clients selling gold and silver, taking advantage of the impressive gains on both metals.
However, many clients have also been purchasing precious metals in order to take advantage of the cheaper rates seen earlier this week. Overall, the week has been in favour of buyers.
The Singapore, Canadian, and London vaults have proven the most popular with GoldMoney's clients, with the Swiss and Hong Kong vaults the lesser preferred.
Kelly-Ann Kearsey, Dealing Manager at GoldMoney, says gold and silver have experienced an extraordinary week. Gold made its biggest daily gain in two weeks on Wednesday which continued into Thursday, edging to a 3-month peak.
Gold has seen highs of USD1,156.00/oz breaking its resistance level, with silver reaching USD 14.91/oz. This week, there has been weak data from the US economy which, in turn, has added to market expectations that the Federal Reserve will remain dovish, raising doubts of potential increases later in the year.
As a result, the US Dollar has weakened against all major currencies with the exception of British Pounds which has also become weaker due to news from Bank of England that they would also not heighten interest rates.
The Bank of Japan has also confirmed that, although it lowered interest rates to minus 0.1% last week, they would continue to drop them if necessary.
All these elements have been favourable to the precious metals this week. Gold has now gained nearly 8 per cent since the start of the year as uncertainty about the health of the global economy has made markets volatile.
04/02/16 16:00. Gold gained 3.2% to $1,115.51, Silver increased 4.1 % to $14.82, Platinum gained 4.4% to $899.91 and Palladium rose 3.7% to $494.50 Gold/Silver ratio: 77
NOTES TO EDITOR
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