New Federal Reserve chair Janet Yellen surprised the market by suggesting she might raise rates sooner than expected which caused a sell-off in the gold market.
However, this trend wasn’t seen at GoldMoney, where our worldwide customer base of around 22,000 precious metal investors bucked the market and bought.
This week in terms of our buyers-to-sellers ratio, we saw the largest percentage in favour of buying so far this year. It was clear our customers were waiting for a more favourable price point to enter the market and the fall-out following the FOMC meeting provided that. We also saw a 33% rise in gross traded volumes on the week.
Gold definitely reclaimed its shine after last week when silver was a more popular choice for our customers.
However, the gold/silver ratio has widened further making the industrial metal a good proposition.
There was a surprise this week when Via Mat Switzerland became the most popular vault location choice for the first time since the middle of last year, although the Malca-Amit vault in Singapore was still trending.
We expect some more bargain hunting on the part of our gold bull customers in the coming week as the main market awaits further action from the Fed, and the focus stays on monetary policies.
GoldMoney is a provider of physical gold, silver, platinum and palladium for retail and corporate customers.
Roland Khounlivong is head of dealing at the online trader
GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations
