The shorter week due to Monday's public holiday made for a quieter week's trading for GoldMoney customers. The online precious metals trader reported a drop of around 40% in trading volume compared to last week.
Head of Dealing at GoldMoney, Roland Khounlivong said: 'Although trading has been quiet the market might finally be finding its direction following US Federal Reserve Chair, Janet Yellen's reaffirmation that the US economic recovery is underway. Her comments to the Senate Budget committee have taken the shine off gold's role as a safe-haven asset.
'Silver had a better week as investors took advantage of the high gold/silver ratio we saw this time last week. That's dropped from 67.64 to 67.09 – still relatively high so we might see some more activity around this in the coming weeks.
'All in all this week was fairly neutral with slightly more buyers than sellers, although we have noticed again the resumption of the west to east physical bullion flow as most of our buy orders have gone into our Singapore vaults, and marginally in Canada.
'The Chinese Consumer Price Index tomorrow (Friday) and the Eurozone and US inflation figures due out next week, should provide further impetus to the market direction. If the Ukraine situation can be de-escalated with the more appeasing tone coming from Russia then geopolitical risk will also play less of a role as optimism for the world's main economies returns.'
16:00 08/05/14: Week on week performance: Gold rose 0.65% to $1,288.80; Silver added 1.48% at $19.21; Platinum gained 0.96% to $1,429.10 while Palladium lost 1.19% to $801.55.
NOTES TO EDITOR
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