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The spectre of a US interest rate hike has come to the fore again this week, pushing the gold price in the opposite direction of the rising dollar.
Kelly-Ann Kearsey, Dealing Manager at GoldMoney, says it’s the same obsession which has ruled the market all year, “Will they, won’t they, and when? Markets have been waiting for the US Federal Reserve to increase interest rates for what seems like an eternity. The last meeting saw rates staying the same amid worries that a hike might impact on the more fragile Chinese and emerging market economies, but with further positive data coming out of the US; analysts say it can’t be long before rates will have to rise there.
“Today’s better than expected employment data together with the soft jewellery demand from India has impinged on price, but, overall, gold has more or less balanced out in terms of buying and selling this week among our GoldMoney customers.
“Silver had a tough start to the week and hasn’t regained its shine on the price front, but it has been the favourite buy this week at GoldMoney.
“Platinum, which is used in diesel autocatalysts, has had a rough couple of weeks thanks to the Volkswagen emissions scandal. It’s close to the lows seen at the end of 2008 but Platinum’s loss has been Palladium’s gains, as it has risen on the expectation of an increase in demand for petrol engine cars which use it in their autocatalytic converters. GoldMoney customers have shown some interest in palladium this week.
“There has been the usual trend of selling out of London and into Singapore, but we’ve also seen some buying interest in Switzerland.”
Week on week price performances
01/10/15 16:00. Gold lost 3.4% to $1,115.15, Silver fell 4.1% to $14.54, Platinum dropped 4.5% to $906.49 and Palladium rose 2.4% tot $672.75 Gold/Silver ratio: 76
