News Column

GoldMoney: Bulls vs bears as economic recovery counters fears

May 18, 2014

This week has been interesting in the physical precious metals market with online trader GoldMoney seeing the battle between bulls and bears played out by its customers.

Head of Dealing at GoldMoney, Roland Khounlivong said: "Our gross traded volume is up 52 per cent on last week with the buyers to sellers ratio at 1.09, almost cancelling each other out as macro-economic influences countered geo-political fears. The raft of data from the US has reinforced the expectation that growth is there and the recovery on track, and this has pushed gold below the $1300/oz level as its safe-haven properties lose some attraction.

"However, the Ukraine and Russian crisis is still giving rise for some concerns and that supported gold to its highest levels this month before it fell back, so there's still no clear trend for the gold price.

"We have seen a marginal increase in interest for palladium from our customers, which can again be possibly explained by geo-political fears as Russia is the main supplier. Whilst in terms of GoldMoney customers, silver has seen the biggest sell off as it suffered from profit taking due to its price increase during the week.

"The geographical flight of precious metals from west to east has continued this week with Switzerland the main vault impacted and Malca-Amit, Singapore, the main beneficiary.

"Next week the Federal Open Market Committee meeting on Wednesday will see the issue of further tapering affecting the market and so we might see further downward pressure on the gold price unless it is counter-balanced by more geopolitical concerns."

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Source: CPI Financial