BENGALURU Gold prices will hold above $1,500 an ounce this year and make modest gains in 2021 as low interest rates and geopolitical uncertainly bolster its appeal, while silver prices will begin to catch up, a Reuters poll showed on Tuesday.
LONDON/BENGALURU Palladium will cost on average more than twice as much as platinum this year, but that premium will narrow in 2021 as prices slip from record highs and platinum gains ground, a Reuters poll showed on Tuesday.
Jan 17 Palladium soared over 9% to power above
the key $2,500 an ounce level for the first time on Friday,
boosted by a chronic shortage of the metal in the market and
hopes the global economy might be turning the corner.
Palladium soared over 9% to power above the key $2,500 an ounce level for the first time on Friday, boosted by a chronic shortage of the metal in the market and hopes the global economy might be turning the corner.
Jan 16 Gold slipped on Thursday as the
safe-haven metal was hurt by upbeat U.S. economic data that
signalled a healthy economy and as stock markets climbed on
optimism over the signing of the U.S.-China Phase 1 trade deal.
Gold slipped on Thursday, as the safe-haven metal was hurt by upbeat U.S. economic data that signalled a healthy economy, and as stock markets climbed on optimism brought about by the signing of the U.S.-China Phase 1 trade deal.
Gold edged higher on Friday, and was on track to post a weekly gain for fifth straight week, as fresh sanctions on Iran by the United States stoked uncertainty supporting demand for the bullion.
(Adds analyst comments, market details, updates prices)
* U.S. payrolls weaker than expected in December
* SPDR Gold holdings fell 0.5% on Thursday
* Palladium set to register best week since mid-June
By Eileen Soreng
Jan 10 Gold edged higher on Friday, and was on
track to post a weekly gain for fifth straight week, as fresh
sanctions on Iran by the United States stoked uncertainty
supporting demand for the bullion.
The targets of the sanctions included Iran's manufacturing,
mining and textile sectors as well as senior Iranian officials
who Washington said were involved in the Jan. 8 attack on
military bases housing U.S. troops.
Spot gold rose 0.4% to $1,557.86 per ounce by 2:12
p.m. EST (1912 GMT) and was up about 0.4% for the week.
U.S. gold futures settled up 0.4% at $1,560.1 per
"The main catalyst for gold prices is the dialogue that's
taking place over Iran and weather or not we are going to see an
acceleration of the conflict... The instability over that is
causing all the volatility," said Jeffrey Sica, founder of
Circle Squared Alternative Investments.
With the sanctions its becoming obvious that there is going
to be even economic consequences, Sica added.
Gold, often considered a safe investment during political
and economic turmoil, surged above $1,600 on Wednesday after
Iran launched missile strikes on U.S. forces in retaliation for
the killing of its top commander in a drone attack.
However, prices retreated 4% after the two sides softened
"The pullback that we saw the last couple of days gave
people an opportunity to buy today," said Michael Matousek, head
trader at U.S. Global Investors.
"There's some resistance at $1,562 but if it trades up
through there, that's going to be a key level to where
short-term traders are going to be involved."
Meanwhile, data from the U.S. Labor Department showed job
growth slowed more than expected in December helping prop up the
The U.S. dollar also fell from four-week highs against the
safe-haven yen and slid versus the Swiss franc on the
possibility of renewed tensions in the Middle East.
Holdings of the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust , fell for the second straight
session on Thursday.
Elsewhere, palladium was up 0.4% at $2,115.88 per
ounce, having hit a record peak of $2,149.50 in the previous
session on supply constraints. The metal was still on track for
its biggest weekly rise since mid-June, up more than 6% so far.
Silver was up 0.9% at $18.06 per ounce.
Platinum gained 1.3% to $978.48 per ounce but was
down 0.2% for the week so far.
(Reporting by Eileen Soreng in Bengaluru
Editing by Matthew Lewis and Marguerita Choy)
* Palladium hits record peak of $2,149.50/oz
* SPDR Gold holdings fell 1.05% on Wednesday
By Eileen Soreng
Jan 9 Gold fell on Thursday, having surged past
the key $1,600 level for the first time in seven years in the
last session, as markets wagered the United States and Iran will
not resort to a further conflict, boosting risk-taking.
Spot gold fell 0.2% to $1,552.28 per ounce at 1:51
p.m. ET (1851 GMT), having earlier slipped to $1,539.78 an
ounce. U.S. gold futures settled down 0.4% at $1,554.3
"The return of risk appetite meant that safe assets such as
gold have suffered from some profit-taking and it's possible
that could continue for a little longer," Standard Chartered
Bank analyst Suki Cooper said.
Gold prices slid after having risen as much as 2.4% early on
Wednesday to break above the key $1,600 level after Iran's
retaliatory attacks on military bases housing U.S. troops in
Concerns of a wider war in the Middle East subsided after
U.S. President Donald Trump refrained from ordering more
military action on Wednesday and Iran's foreign minister
diplomat said missile strikes "concluded" Tehran's response.
Reduced demand for safe-haven bullion was also reflected in
the holdings of the world's largest gold-backed exchange-traded
fund SPDR Gold Trust , which dropped 1.05% on Wednesday.
"Gold will remain very twitchy on Iran-related headlines or
rocket fire in Baghdad for some days to weeks," said Tai Wong,
head of base and precious metals derivatives trading at BMO.
"Even if the de-escalation happens there should still be
some risk premium helping gold hold above $1,525 level where
gold was trading before the U.S. strike."
As the United States and Iran backed away from conflict in
the Middle East, U.S. stock indexes hit record highs, while
firming optimism about a U.S.-China trade deal added to the
China's Vice Premier Liu He will sign a Phase 1 deal in
Washington next week, the commerce ministry said on Thursday.
Elsewhere, palladium hit a record peak of $2,149.50
an ounce on sustained supply concerns, and was last down 0.4% at
$2,096.06 per ounce.
"The outlook for palladium remains bullish. There is simply
not enough material around and being taken out of the ground,"
said BMO's Wong said.
"The demand is really inelastic because substitution (with
platinum) is difficult and if you are an automaker you need the
catalytic converters to sell cars, so you will pay what you
Silver fell 1% to $17.90 per ounce, while platinum
gained 1.2% to $964.82.
(Reporting by Eileen Soreng in Bengaluru; Editing by Lisa
Shumaker and Steve Orlofsky)
Gold fell on Thursday, having surged past the key $1,600 level for the first time in seven years in the last session, as markets wagered the United States and Iran will not resort to a further conflict, boosting risk-taking.