Dealing Desk: Gold Soars to New Heights

Goldmoney Wealth clients have been net buying gold this week, jumping at the opportunity to get in on upward price movements. Clients have favoured vaults in Zurich and London, and have shown less preference for the Toronto, Singapore, and Hong Kong vaults.

The start of last week saw the U.S. dollar index drop to a 12-week low, while gold hit a two-and-a-half month high on Wednesday after starting out the week at $1,226.

Better-than-expected nonfarm payroll numbers, indicating improved job security for U.S. workers, resulted in U.S. dollar strengthening on Friday; however, gold remained strong and went on to reach a three-month high of $1,236 on buying interest as global equities softened.

Silver followed gold, rising to a three-month high of $17.81. With political tensions emerging under the Trump administration and the approaching elections in France, the safe haven appeal of gold continued to shine; the yellow metal hit $1,245, while silver hit $17.90 – the highest level seen since its big drop in November 2016.

“Often the bellwether of uncertainty, gold gained 6% through the first week of February. It’s clear that the possibility of a delayed rate hike and Trump’s unpredictability continue to push gold higher,” said Rachel Stonier, dealing manager at Goldmoney Wealth. “Global equity markets have been in an inflated bubble for a long time now; should Trump’s policies fail to produce growth and the pace of rate hikes quicken, this bubble could very well burst.”

Platinum hit a three-month high mid-week at $1,019, while palladium struggled to push through $770 for any meaningful length of time.

All precious metal prices were up over the past week: platinum saw the biggest gain of 1.9%, gold was up 1.4%, palladium rose by 1%, and silver gained 0.8%.

09/02/17 16:00 – Gold: $1,234.37; Silver: $17.67; Platinum: $1,020.30; Palladium: $772.43. Gold/Silver Ratio: 69.41.

NOTES TO EDITOR
For more information, and to arrange interviews, please contact Jacquelyn Humphrey, Communications & PR Tel: + 1 647 499 6748 or email: Jac@Goldmoney.com

 

Source: GoldMoney.com.

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