Unexpected improvement in US economic fortunes have dented gold prices over the last sevendays, with news of unemployment dropping by a surprising 34,000 leading buyers away from safe haven investments.
The late shift followed a relatively steady week for gold prices – even despite the continuing uncertainty over Greece’s debt talks, their continued position within the Euro, and strong rhetoric from European leaders.
According to Dealing Manager at GoldMoney, Kelly-Ann Kearsey, ‘Gold was above the psychologically-important threshold of $1,200 for most of the week, but the two key factors for the latter part of the week were the signal from the Federal Reserve towards a US interest rate rise in June for the first time since 2006, and the jobless figures coming out of the US.
‘The unexpected good performance more than compensated for disappointing US growth figures for the first quarter of the 2015, which saw annualised growth of 0.2% compared to 2.2% in the previous quarter.
‘Over the coming days, we expect to see anticipation building on the position of Greece ahead of the 12th May deadline for a further IMF repayment falling due. And of course, speculation about the UK election is continuing to mount, and there is a possibility of drawn-out negotiations following an inconclusive result, that would lead to some uncertainty.’
Overall, the week saw net buying of gold, platinum and palladium, with sales of silver.
Again, the geographical trends are continuing, with sales out of UK and Swiss vaults, and buying into GoldMoney’s vault in Singapore.
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