The price of palladium, used mainly in emissions-reducing catalysts for vehicles, is up over 60 percent since marking a trough in mid-August. Prices for the metal overtook gold for the first time in 16 years early in December 2018.
Spot palladium was up 0.1 percent at $1,360, as of 0350 GMT, after earlier hitting a record high of $1,366.50.
· “For now palladium is gripped by a serious supply shortage and so until that lifts, we may very well see even higher prices from here,” INTL FC Stone analyst Edward Meir said.
Spot gold was steady at $1,292.76 per ounce, while U.S. gold futures dipped 0.1 percent to $1,292.30 per ounce.
· Risks to the U.S. economic recovery, no end in sight to a partial government shutdown and volatile stock markets have made several Federal Reserve officials call for patience before raising interest rates again.
Echoing sentiments, Fed’s latest report on the economy said businesses across the United States have become less optimistic in recent months.
· “Gold has risen a lot in
· Gold has gained for five straight weeks, but prices have been hovering around the $20 range for the past two weeks and are unable to break a strong technical resistance at $1,300 level.
· “Consolidation continues to be the story in gold. It’s going to take a break above $1,300 or below $1,275 to get the market moving,” said Amit Kumar Gupta, portfolio management services head, Adroit Financial Services in New Delhi.
· Worries over a disorderly Brexit, after UK Prime Minister Theresa May’s deal was defeated by British lawmakers on Tuesday, also supported gold prices, analysts said.
May on Wednesday narrowly won a confidence vote overnight and invited other party leaders for talks to try to break the impasse on a deal.
· Platinum was steady at $805 an ounce, while silver dropped 0.3 percent to $15.55.
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· GOLD IS TRIANGULATING, BREAKOUT TO DEVELOP AT ANY TIME
Gold is coiling up towards a breakout from a triangle on the 4-hr time-frame. A top-side breakout will have price resistance in focus in the 1305/10-area while a breakdown will have slope support from the summer in focus.
Reference: Reuters, Trading View
Spot palladium had risen 1 percent to $1,410.50 per ounce by 0337 GMT, having hit an all-time high of $1,434.50 on Thursday. The metal is on track to climb for a fourth week in its strongest weekly gain since the week ending Sept. 21. It has risen around 12 percent so far this month.
The price of palladium, used mainly in emissions-reducing catalysts for vehicles, is up nearly 70 percent since a low marked in mid-August. Prices for the metal overtook gold for the first time in 16 years early in December.
· "This is the eighth consecutive year where palladium is going to be in deficit and there are no signs that it is going to go away," said Dominic Schnider, head of commodities and APAC forex at UBS Wealth Management in Hong Kong.
"The question people need to ask here is how long it would take for the car manufacturers to switch to platinum, which is trading around $800."
· Holdings in palladium exchange-traded funds (ETFs) tracked by Reuters have nearly halved from January last year as people took delivery and sold or gave the metal for lease due to insufficient supplies, traders and analysts said.
Spot gold was steady at $1,292 per ounce, while U.S. gold futures were firm at $1,291.60 per ounce.
· "Uncertainties around the U.S.-China trade war and the U.S. government shutdown are supporting gold prices," said Brian Lan, managing director at dealer GoldSilver Central in Singapore.
"Also, the U.S. dollar did not react to conflicting reports about the removal of tariffs on Chinese goods, which is also leading to
· A Wall Street Journal report on Thursday that U.S. Treasury Secretary Steven Mnuchin had considered easing tariff imposed on Chinese imports lifted broad market sentiment, although a Treasury spokesman later denied the report.
· Spot gold was set for its fifth straight weekly gain, also supported by expectations that the U.S. Federal Reserve may not raise interest rates this year and uncertainties around Brexit.
· "(Gold) does need a trigger to spark it upwards, either in the way of a weaker dollar, renewed stumbles in U.S. equities or clearer indications of slowing U.S. growth," said INTL FCStone analyst Edward Meir.
· Spot gold is due for a sharp move, as its consolidation within a neutral range of $1,285-$1,299 per ounce is ending, according to Reuters technical analyst Wang Tao.
· In other metals, platinum rose 0.3 percent to $807.50 an ounce, while silver was steady at $15.53.
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So far, however, the golden crossover hasn't impressed the bulls. The yellow metal continues to trade in a narrowing price above $1,20. More importantly, a break above $1,300 will likely remain elusive, as the golden crossover is the result of the metal's 90-degree rally from the low of $1,196 seen on Nov. 13.
Put simply, the bulls may have run out of steam. In fact, the 14-day relative strength index (RSI) has rolled over from the overbought territory and has breached the rising trendline. As a result, a price pullback could be in the offing.
Reference: Reuters, FXStreet
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