As the gold price rose amid safe haven buying from the tension in Ukraine, GoldMoney customers waited out the rush with the bulk of precious metal purchases occurring after the main market moves, says Roland Khounlivong, Head of Dealing at the online precious metals trader…
Our customers have been paying attention to prices and timing their purchases, with big orders coming in after Russia withdrew the imminent military threat from Ukraine.
That’s not to say the tensions didn’t have an impact. Buy orders, particularly for gold are up. Our Brink’s vault in Toronto, Canada and Malca-Amit in Singapore were the main beneficiaries reflecting the desire to place metals away from the potential jurisidiction risk area.
Whilst the situation in Ukraine and Crimea remains a potential catalyst, the main driver was poor economic data from the US with a slower than expected growth in productivity, and likewise the worse than expected US ADP National Employment Report.
Gold’s rise has extended its price ratio lead on silver, with silver still relatively cheap in comparison to the yellow metal. Since mid-January, GoldMoney has seen a bullish trend in its customer trading.