Precious metals slide as the bears prowl the markets

Precious metals slide as the bears prowl the markets

GoldMoney weekly market report and customer metrics

Monday saw a drop in the gold price, partly triggered by Asian markets and rumours that some big funds might be dumping gold into the market.

Not surprisingly there was some panic selling as a result, but as Dealing Manager at GoldMoney, Kelly-Ann Kearsey, explains, there were still many buyers prepared to put some money into the yellow metal: ‘We had a 73% increase in activity compared to last week and while there were some selling orders we actually had more customers buying - albeit in smaller amounts. The usual vaults, UK and Switzerland saw the bulk of activity.

‘A conclusion to the Grexit situation and indications of rising inflation in the US, and thus an increased likelihood of a rate hike, dampened gold’s safe haven status and brought out a riskier appetite among investors. Moving forward, the American driving season and summer holidays in many markets, should indicate a quiet period, but one where any fairly large movements could have a significant effect on the markets.

‘Silver was also on the selling list for some GoldMoney customers this week, although the gold/silver ratio has improved slightly. There was little activity with platinum and palladium.

‘Next week brings the US Durable Goods Orders on Monday and then the Federal Open Market Committee meeting on Wednesday which might give further food to investors.’

Week on week price performances

23/07/15 16:00. Gold fell 4.5% to $1,092.81, Silver lost 2.3% to $14.71, Platinum dropped 3.3% to $973.99 and Palladium was down 2.2% at $617.97. Gold/Silver ratio: 74

Ends

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