Dealing Desk: Gold Holds through Historic Divorce ProceedingsMar 31, 2017·Rachel Stonier
"Gold reached a one-month high of $1,261 on safe-haven buying interest. Economic data from the U.S. released later in the week saw consumer confidence at a 16-year high and house prices up by 5.9%, hitting a 31-month high."
Goldmoney Wealth clients have been net buying all precious metals this week, with gold being the most actively traded. Clients have preferred vaults in Toronto, London, and Singapore, and have shown less preference for the vaults in Hong Kong and Switzerland.
With the failure to deliver the healthcare bill last week, it’s becoming clear that Trump is finding it difficult to keep electoral promises. The markets are skeptical and there are growing concerns about planned tax cuts and infrastructure spending. On the other side of the Atlantic, Britain officially filed for divorce from the European Union and entered the formal two-year Brexit process.
Gold reached a one-month high of $1,261 on safe-haven buying interest. Economic data from the U.S. released later in the week saw consumer confidence at a 16-year high and house prices up by 5.9%, hitting a 31-month high. The U.S. dollar strengthened as a result and gold dropped back to the $1,250 level. Buyers of the yellow metal have been predominantly asking for ETFs; European investors have been buying bullion on dips in price levels, while Heraeus, our metal supplier in Hong Kong, indicates there has been particular interest in 1 ounce, 100 gram and 1 kilogram gold bars.
Silver reached a four-week high of $18.27 mid-week before dropping back to $18.19 as the U.S. dollar found renewed strength. U.S. demand for silver coins has increased significantly; with silver being a byproduct of other metals, production cannot be cranked up to meet rising needs.
Platinum sales have dropped by 40% year-over-year to the lowest level in a decade; speculative short positions have increased pressure while producers have been selling, causing the metal to drop by $16 to $952. Palladium rallied at the start of the week, hitting a two-year high of more than $180, and has held up well despite producers and funds selling ahead of the quarter-end.
As the week comes to an end, the markets remain concerned about the impact of Article 50 and all precious metals are trading in tight ranges at light volumes.
With the exception of silver, which was up 3.7%, precious metals remained largely static this week. Gold and palladium remained flat at 0% and platinum posted a small loss of 0.3%
30/03/17 16:00 – Gold: $1,249.36; Silver: $18.25; Platinum: $956.60; Palladium: $804.00. Gold/Silver Ratio: 68.46.
NOTES TO EDITOR
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