🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

Gold Back at $1,300 on Growth Fears, Palladium Jumps on Russia Ban

Published 03/15/2019, 02:21 PM
XAU/USD
-
XAG/USD
-
DX
-
GC
-
HG
-
SI
-
PA
-
PL
-
XPD/USD
-

Investing.com - The kings of precious metals, gold and palladium, are both vying for world attention with major price milestones achieved on Friday from global growth fears and a Russian export ban, respectively.

U.S. gold futures, as well as globally-traded bullion, moved above the key $1,300 perch after official suggestions of more downward pressure on China's economy and weakening in U.S. employment trends and New York State manufacturing data.

Palladium, meanwhile, surged after news that Russia was considering a temporary ban on the export of precious metals scrap fed into fears of a supply shortfall this year.

gold futures for April delivery settled up $7.80, or 0.6%, at $1,302.90 per ounce on the Comex division of the New York Mercantile Exchange. It hit a two-week peak of $1,310.35 on Thursday.

Spot gold, reflective of trades in physical bullion, was up $6.19, or 0.5%, to $1,302.35 by 2:05 PM ET (18:05 GMT).

"We see the price of gold back above $1,300, sparked by a weaker-than-expected Empire State manufacturing survey," Walter Pehowich, executive vice-president at Dillon Gage Metals in Addison, Texas, said in his daily note, referring to the drop in the New York state manufacturing gauge to below 10 for the third consecutive month in March.

"The yellow metal is teetering at the previous resistance level of $1,304," Pehowich wrote. "This seems to be an important level as the market either accelerates or declines, depending on (whether) the trend is up or down from this level."

Comments from China’s Premier suggesting downward pressure for the world’s second largest economy, and The Bank of Japan's reduced assessment on overseas economies further bolstered gold.

Investors also turned to the safety offered by bullion after the number of Americans filing applications for unemployment benefits rose more than expected last week amid a higher-drop-than-expected in new home sales in January.

The weaker dollar was another factor helping gold.

The Dollar Index, which measures the greenback against a basket of six currencies, slid 0.2 % to 96.59 by 2:05 PM ET (18:05 GMT), falling for the fifth time in six sessions.

Palladium rose for a fourth-straight day, reaffirming its standing as the world's costliest metal, after Russia’s trade and industry ministry said it was considering a ban on the export of precious metals scrap and tailings between May 1 and Oct. 31 to promote domestic refining of the materials. The ban, if enacted, would not apply to exports of ores or concentrates.

The spot price of palladium rose by $5.25, or 0.3%, to 1,557.35 per ounce by 2:05 PM ET (18:05 GMT).

Trades in other Comex metals as of 2:05 PM ET (18:05 GMT):

Palladium futures up $3.90, or 0.3%, at $1,518.50 per ounce.

Platinum futures up $4.35, or 0.5%, at $831.45 per ounce.

Silver futures up 15 cents, or 1%, at $15.32 per ounce.

Copper futures up 2 cents, or 0.6%, at $2.91 per pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.