US palladium futures rose to a two-year high on Wednesday, ending 5 percent higher, as the popular US exchange traded funds took physical metals off the market. COMEX June gold settled up $6.20 at $1,159.60 an ounce. Range $1,151 to $1,162.80. Bullion supported by an equities rally. US benchmark S&P 500 index rose above 1,200 for first time since September 2008.
Gold sentiment dented as data showed US consumer prices rose only 0.1 percent in March. Gold investment demand in 2009 surpassed jewellery buying for the first time since 1980 on safe-haven demand, said GFMS. Gold is near the final phase of its 10-year bull run, but prices could still climb as high as $1,300 an ounce in 2010 driven by higher investment demand, said Philip Klapwijk of GFMS. COMEX gold final volume at 113,765 lots. Spot gold $1,154.40 at 3:09 pm EDT (1909 GMT), compared with $1,150.15 late in New York's previous session.
COMEX May silver finished up 16.6 cents at $18.415 an ounce, rising more than gold. Range $18.210 to $18.505. COMEX silver final volume 41,794 lots. Spot silver at $18.36 versus $18.18 late in the prior session. July platinum ends up $16.90 at $1,734.20 an ounce on a bounce across industrial metals. Spot platinum at $1,727 an ounce.
June palladium closes up $26.20, or 5 percent, at $548 an ounce as investment demand drives a price rally in a relatively thin market. Tremendous investment money tied up in platinum group metals, creating physical demand - Miguel Perez-Santalla at Heraeus. ETF Securities' US platinum and palladium funds have nearly 1 million ounces of the combined metals. Spot palladium at $546 an ounce.
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