Gold pulled in two directions - strong dollar Vs safehaven   24 Apr 2015

Gold pulled in two directions - strong dollar Vs safehaven

GoldMoney weekly market report and customer metrics

Gold prices may have slipped to three week lows this week, but it hasn’t been all gloom and doom with online physical metals trading platform, GoldMoney, reporting some interest in both gold and platinum.

Kelly-Ann Kearsey, Dealing Manager at GoldMoney said, ‘Our customers have definitely shown more interest in gold and platinum this week, with the selling focused on silver and palladium.

The usual trend of west to east flows has been predominant, with significant buying activity into our Singapore vaults and sell orders coming out of the UK.’ Conflicting Pressures The GoldMoney buy/sell ratio showed to be almost neutral in the end in terms of the quantity of orders, with a few larger buys in terms of value, and Kelly-Ann says there are clear conflicting pressures on the market. ‘Gold came under pressure following the US Existing Home Sales figures, which was good news for the US economy, and supports an impending rate hike for the first time since 2006. The Federal Open Market Committee are meeting next Wednesday which will give further direction.’ ‘However, on the other hand, the continuing economic uncertainy in Greece is still giving some support to Gold. If Greece can’t make its loan payments next month then an exit from the Eurozone is still on the cards and that will give gold a boost as a safe-haven asset amid the fallout in Europe.

What’s Next?

‘This Friday the Eurozone finance ministers are to meet in Latvia’, says Kelly-Ann, ‘However, it is unlikely that a deal will be agreed before the Eurogroup meeting on 11 May 2015 – the day before Greece must pay back the total balance due to the International Monetary Funds (IMF).

Any further signs of a ‘no deal’ scenario could raise the prospect of a Greek exit or ‘Grexit’.

‘Next Wednesday will be an important day for US data as we will be waiting on the US GDP and the US FOMC Meeting Announcement which may give further indications not only to the strength of the economic recovery but also a renewed statement for what we might expect with regards to the interest rate hike.’ Week on week price performances 23/04/15 16:00. Gold down 0.4% to $1,191.85, Silver down 2.4% to $15.83, Platinum down 1.7% to $1,132.14 and Palladium off 0.6% to $765.35.

ENDS

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