Dealing Desk: Gold and Silver Take a Tumble Following U.S. Presidential Election

Goldmoney Wealth clients have been net buying all precious metals with silver being the favoured buy this week, as they have taken advantage of the dip in its price.

Clients have preferred vaults in Switzerland, Canada, and Singapore, and have shown less preference for the Hong Kong vault.

“As the markets digest the news of America’s new president-elect, who intends to invest heavily in infrastructure and defense during his tenure, equities – particularly industrial stocks – are looking attractive to investors,” said Geoffroy Buffetrille, dealing director at Goldmoney Wealth. “Gold and silver hit five-month lows of $1,211 and $16.62 respectively on Monday as the U.S. dollar rallied to an 11-month high, though both metals somewhat strengthened by midweek.

“With the market anticipating an 80% probability of a U.S. rate hike on December 14, gold may come under further pressure in the short-term,” said Rachel Stonier, dealing manager at Goldmoney Wealth. “Physical demand for the metal should provide support for the price at its current level of $1,220; per our refining partner Heraeus, buying interest is increasing with activity already noted in China. We believe the growth prospects under Donald Trump’s planned infrastructure spend could benefit commodities, which may in turn eventually boost Gold’s attractiveness in the long term.”

Week over week, palladium has remained the strongest performer, gaining 5.3% on last week’s price, while other precious metal prices decreased: gold posted a 3.4% decline, platinum fell by 2.9%, and silver suffered an 8.5% loss. The gold to silver ratio has increased to 72.2.

17/11/16 16:00. Gold: $1,227.39; Silver: $17.00; Platinum: $945.27; Palladium: $726.06; Gold/Silver Ratio: 72.2.

NOTES TO EDITOR
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