Commodities

Palladium surges to record ; gold reclaims $1,300/oz

Reuters March 15 | Updated on March 15, 2019 Published on March 15, 2019

Palladium soared to a record high on Friday as news that Russia is considering a temporary ban on the export of precious metals scrap fed into fears of a supply shortfall this year.

Gold also bounced back above $1,300 an ounce as the dollar eased and global growth fears ramped up.

Palladium jumped to all-time high of $1,567.50 an ounce, and was last up 0.2 percent at $1,561.70 at 1258 GMT.

Russia's trade and industry ministry said it is considering a ban on the export of precious metals scrap and tailings between May 1 and October 31 to promote domestic refining. The price of the metal, used mainly in emissions-reducing catalysts for vehicles, has risen almost 90 per cent from a trough in mid-August last year and is up about 24 per cent so far this year.

“The supply outlook remains tight... and that is providing enough confidence for the positive momentum to be maintained,” Saxo Bank analyst Ole Hansen said.

Meanwhile, spot gold rose 0.5 per cent to $1,302.21 per ounce, having shed 1 per cent on Thursday.

US gold futures rose 0.5 per cent to $1,302.

The dollar fell against major currencies, and was on track for its biggest weekly loss since early December ahead of a US central bank policy meeting next week. A loosening trend in global monetary policy is helping gold, SP Angel analyst Sergey Raevskiy said.

Published on March 15, 2019
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