Dealing Desk Update: Gold under pressure as profit taking increasesMar 27, 2014·Roland Khounlivong
Gold has had a rocky week. Dollar prospects improved and the yellow metal's safe haven status dropped with the escalation of war in Crimea fading in the short term.
Roland Khounlivong, Head of Dealing at GoldMoney, the online precious metals trader, said: 'Some of our customers have been profit taking as they look to adjust their portfolios, but we are still seeing others chasing the dips in price as an opportunity to buy.
'The escalation of the situation in Ukraine has led to some uncertainty in the market, with all eyes on the European Central Bank and the action there.
'Clearly, what we can see is the continuation of what was happening last week. Gold and silver were sold off, however, in terms of trends we can still see a flight from east to west regarding locations such as Singapore and Hong Kong for storage.'
'Over the next couple of weeks the focus is going to be the European Central Bank meeting on Thursday 3rd April, and then the US Employment Situation. The market is going to be studying the economic data closely for its short term movements, but warnings about stock market corrections and Asian slowdown fears are likely to keep gold high on the list for those who want diversification and wealth protection.'
GoldMoney has more than 22,000 customers, and stores $1.5bn of precious metals for its customers worldwide.
16:00 27/03/14: Week on week prices: Gold fell 2.72% to $1,295.46; Silver fell 3.86% to $19.69; Platinum also dropped losing 3.45% at $1,392.49 while Palladium took a fall to $759.10.
NOTES TO EDITOR
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Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 60 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar.
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