Gold hits 5 year low in lacklustre holiday trading

Monday saw gold hit a five year low with even the sell-off in Chinese shares not spurring safe haven buying. Low inflation and the strong dollar continue to dominate says GoldMoney Dealing Manager, Kelly-Ann Kearsey, ‘Interestingly we haven’t seen any big sell orders, we’ve had a steady flow of small sells along with buys so our customers are still not committed either way.

‘Investors might be attracted to some higher yielding options, but, with the current gold and silver prices, some customers have decided to add to their portfolio for wealth preservation. In the current circumstances, I can’t see the market taking any real direction until we’ve got the first rate rise out the way which is the primary obsession. Once we’re at that point, inflationary fears will come into play again. While safe haven buying hasn’t been in evidence recently, the fact that the Greek debt situation has not yet been resolved could also present some opportunities for turbulence and a return to some safe haven tactics.’

‘Singapore remains our most popular destination, and, of all the metals, gold still looks to be the most popular among GoldMoney customers, with its silver cousin coming in second.’

Week on week price performances

06/08/15 16:00. Gold off 0.2% to $1,089.56, Silver down 0.7% to $14.65, Platinum slipped 3.6% to $946.99 and Palladium down 3.3% at $598.47. Gold/Silver ratio: 74