· Gold got a lift form uncertainties surrounding U.S.-China trade talks ahead of a Dec. 15 tariff deadline and a weaker dollar.
· Spot gold was up 0.13% to $1,463.75 per ounce. U.S. gold futures settled up 0.21% to $1,468.1.
· “Gold is riding higher on dollar weakness and caution ahead of a looming tariff deadline,” said FXTM analyst Lukman Otunuga. If Washington proceeds with the earmarked tariffs, gold could get a further boost, he added.
· A report from the Wall Street Journal said trade negotiators from both sides are planning for a delay of the December tariff. Gold pared gains slightly on the report, but remained supported as doubts over a phase-one deal persisted.
· Markets also sought monetary outlook for 2020 by the U.S Federal Reserve, which is expected to keep rates unchanged at its two-day policy meeting ending Wednesday.
· “In the short-term, if the Fed shifts to a more hawkish assessment, gold is at risk from further repositioning. Technically this could pull prices back to $1,410/oz,” UBS analysts said in a note.
· Palladium zoomed past $1,900 an ounce for the first time ever on Tuesday as a power crisis halted production at mines in major producer South Africa, exacerbating concerns over supply of the autocatalyst and extending the metal’s record run.
· Spot palladium jumped 0.72% to $1,894.70 an ounce, after hitting an all-time high of $1,901.
· “South Africa produces 40% of world’s palladium and the ESKOM outages are hitting some mines, giving palladium just that extra nudge above $1,900,” said Tai Wong, head of base and precious metals derivatives trading at BMO. “We’ve now had 13 consecutive positive sessions, which seems a little rich, so it wouldn’t be surprising to see some consolidation, though the overall trend continues to look quite positive.”
· Mines across South Africa are shutting down after flash flooding caused the largest power blackouts in more than a decade, with major miners Harmony Gold , Impala Platinum, and Sibanye-Stillwater all being forced to cut production. Scarcity concerns surrounding palladium have already helped the metal rise about 50% in 2019, owing to its large demand in the auto sector.
· Other metals, too, gained on the outages in South Africa, with platinum rising 2.6% to $918.37 an ounce, marking its biggest intra-day jump since Oct. 23. Silver rose 0.2% to $16.63.
Reference: CNBC
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