Dealing Desk: Prices rise but bullion investors go tactical

Feb 26, 2015·Kelly-Ann Kearsey

Gold prices have risen this week before setting back to exactly the same price as they were this time last week.

At GoldMoney, customers have been selling in a week that has seen their trading volumes fall by 45% on last week.

Gold Sales
Chinese buyers coming back into the market after their week long Lunar holiday helped boost the yellow metal's prices. Dealing Manager Kelly-Ann Kearsey says they've seen net selling in terms of value, 'I think our customers are being pro-active in the market. The latest thought process coming out of the Federal Reserve in the USA is that although a rate rise isn't imminent, it is being considered on a month by month basis. It could happen sooner rather than later. A rate rise will give strength to the dollar and usually hits the gold prices. Some GoldMoney customers are selling while prices are above the critical $1200 level, in the anticipation that they can buy back more cheaply in a few months.'

Value not Quantity
However, Kelly-Ann said, 'Although we have seen net selling in terms of value, there are still more buyers than sellers for gold, showing that overall sentiment remains positive for bullion buying. We have also seen a continuation of the trend for the selling to be out of UK and Swiss vaults, into our eastern locations such as Singapore.'
The chart below shows how the ratio of buyers to sellers has changed over the week.

Ratio Chart

Platinum and Palladium
Platinum is still below the $1200 support level, despite rising car sales in Europe, while the Palladium price is seeing some support. 'Both platinum and palladium are still viewed as industrial metals,' says Kelly-Ann, 'With platinum being used mostly in diesel cars and the desire to cut air pollution meaning that diesels are falling out of favour, this could be hitting its price. Concurrently rising car sales in the US and China where petrol is the favourite fuel, could be supporting palladium.'

Week on week price performances
26/02/15 16:00. Gold no change at $1,208.50, Silver up 0.9% to $16.57, Platinum gained 0.9% to $1,176.99 and Palladium rose 3.6% to $808.20.


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GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for private and corporate customers, allowing users to buy precious metals online. The easy to use website makes investing in gold and other precious metals accessible 24/7.

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