66315
Palladium Near 16-Year High, Gold Firm
Palladium Near 16-Year High, Gold Firm

Palladium Near 16-Year High, Gold Firm

Palladium Near 16-Year High, Gold Firm

Strong speculative demand kept palladium near 16-years highs on Monday, but weak fundamentals are expected to soon take their toll on prices of the metal used to make autocatalysts for gasoline-fueled cars.
Meanwhile, gold rose ahead of a US Federal Reserve policy meeting on Tuesday and Wednesday that is expected to yield clues to the timing and magnitude of future interest rate increases. Spot gold was up 0.2% at $1,268.81 an ounce, after shedding 1% on Friday, its biggest one-day percentage fall since May 18, Reuters reported.
US gold futures fell 0.1% to $1,270.10 an ounce. Palladium gained 0.55 to $894.50 after rising above $910 an ounce on Friday, its highest since 2001.
“It seems to be speculators driving the price higher,” said Robin Bhar, head of metals research at Societe Generale, adding there was a shortage of metal for immediate delivery. That shortage has created a premium or backwardation of around $6 and $21 dollars an ounce for the June and July futures respectively over the August contract. But analysts say declining car sales in China and the United States point to weaker demand for palladium.
Overall, precious metals markets are waiting for the outcome of the Fed’s meeting. Higher rates as expected by the market could boost the dollar, which when it rises makes dollar-denominated commodities more expensive for holders of other currencies. “Markets will be scanning the Fed’s language to see what it is thinking in terms of forward rate guidance and looking for clues on how it will shrink the balance sheet,” Societe Generale’s Bhar said.
Silver was down 0.1% at $17.15 per ounce, after touching a one week low of $17.07. Platinum rose 0.8% to $942.90 per ounce.

 

Short URL : https://goo.gl/K6b9zc
  • https://goo.gl/QxtGgw
  • https://goo.gl/MvBii6
  • https://goo.gl/hlTRXj

You can also read ...

Dow futures dropped more than 100 points in early trading, as traders returned from the long holiday  weekend to face fresh selling pressure for US stocks.
A six-day rebound in world stocks began to splutter on Tuesday...
ADB Forecasts India Growth at 7.3 Percent
The Asian Development Bank expects India’s growth to pick up...
Chinese ironworks are increasingly  using Australian ore, which has  a high iron content.
Global stock markets are down from their recent peaks and...
London-based Capital Economics expects the German economy to expand by 2.7% this year. This would be above the government’s  more conservative forecast of 2.4%.
The German economy is expected to improve in the next six...
Indonesia Criticizes Trump’s Protectionist Policies
Indonesia is foregoing billions of dollars on offer from...
Ghana Told to Cut High Agro Imports
The World Bank country director for Ghana, Henry Kerali, has...
Goldman Raises Red Flag Over US Gov’t Spending
US fiscal policy is headed for “uncharted territory.” That’s...
Venezuela’s Digital Currency Makes Debut
Venezuela has begun the process of introducing a new digital...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus