Starting at $1,286 on Monday gold continued with the momentum of last Friday’s fall, bottoming out on Tuesday at $1,261 in US trading. From then on the price rallied to end slightly higher for the week at $1,290. In contrast, silver fell by 2.8% over the week closing at $20.77 on Friday.
GoldMoney customers, who hold almost 21 tons of gold in secure vault storage worldwide, increased their trading activity by 53% in USD terms compared with last week. This continues a trend of steadily increasing trading levels over the last 3 weeks.
The relative share of trading between the metals remained similar to last week with gold accounting for almost two thirds of the total. Both gold and silver suffered another net sell this week and once again gold was the larger net sell in total USD terms. Trading in palladium remained subdued despite the price falling by 4.1% over the week.
Commenting on customer activity, GoldMoney’s Head of Business Development Andrew McGowan said: ‘The ratio of buyers to sellers increased from 1.10 last week to 1.53 this week which indicates a significant improvement in sentiment despite the overall net sell in terms of USD trading value.’
Commenting on market mood, GoldMoney’s Head of Research Alasdair Macleod said: ‘Sentiment for gold and silver in Western capital markets is now extremely bearish, and this has been reflected in an increase in open interest on Comex as prices fell, illustrated in the charts below. It is unusual to see open interest increase substantially on falling prices. In gold, it represents additional short sales amounting to 72.4 tonnes since 6th November, and in silver nearly 2,600 tonnes. So far it has failed to drive the gold price below $1,200, but if last week was anything to go by then a bear-raid later today cannot be ruled out, when Far Eastern buyers are absent from the market. However, if the recent low at $1,261holds this action will be judged with hindsight as a selling climax, which is ultimately bullish.’
NOTES TO EDITOR
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GoldMoney is one of the world’s leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day.
GoldMoney customers hold almost 21 tons of gold in storage worldwide, and own a combined total of US$1.5 billion in precious metals.
Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 60 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar.
GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey’s anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers’ assets with independent audit reporting every 3 months by two leading audit firms.
GoldMoney has its headquarters in Jersey and also has offices in London and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink’s, Via Mat, Malca-Amit, G4S and Rhenus Logistics.