Dealing Desk: Metals Decline with Reduced Volatility

Goldmoney Wealth clients have been net buying all precious metals this week, with gold being the most actively traded. Clients have preferred vaults in London, Zurich, Toronto, and Hong Kong, and have shown less preference for the Singapore vault.

Macron, France’s new President-Elect, won 66% of the vote with 99.99% registered votes counted and eliminating chances of a potential “Frexit” referendum under a Le Pen win. In the U.S., Cleveland FED President & CEO Loretta Mester said interest rates should continue to rise as the Fed has now met its employment goal (a 17-year low) and is nearing its inflation target, which decreased the safe-haven appeal of – and demand for – gold.

Gold started the week at a seven-week low of $1,225 and further declined. Once the U.S. dollar index climbed to a two-and-a-half week high, U.S. treasuries rose to a five-and-a-half week high, and the S&P 500 reached an all-time high, gold came under pressure as volatility subsided and the metal dropped to an eight-and-a-half week low of $1,215.

Silver retreated on selling interest to a four-month low of $16.18 while demand for the American Eagle coin in the U.S. market, which plays an important role in the price of silver, declined by 54% in the first four months of the year. ETF buying started and retail sentiment began turning bullish after the steep price fall, further supporting the dip in price.

Platinum experienced heavy selling but recovered to surpass the $900 level, while palladium rebounded to the $800 level after dropping as low as $788.

All precious metals were relatively flat this week. Gold and silver both dropped by 0.3%, platinum was up 1.7%, and palladium rose by 1.3%.

11/05/17 16:00 – Gold: $1,225.68; Silver: $16.28; Platinum: $915.49; Palladium: $805.64. Gold/Silver Ratio: 75.30.

NOTES TO EDITOR
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