Gold rebounded from a six-week low to trade flat on Tuesday as the dollar fell, while palladium hit 17-month highs after funds chased up prices of the jewellery - and autocatalytic - making metal deemed to be in short supply. The spot price of gold, which initially tumbled to $1,638.82 an ounce, its lowest since January 4, hit a session high of $1,663.81 after the G7 statement boosted the precious metals' appeal as a dollar hedge.
By 2:30 pm ET (1930), gold's spot price hovered around $1,650, versus the late Monday afternoon level of $1,649.36. PGMs have soared in value since the middle of last year due to concerns about shrinking output due to mining disruptions in South Africa and a drop in supply from Russia. Expectations of robust automotive sales have also boosted prices.
In Tuesday's market, palladium's spot price surged nearly 2 percent to $772 an ounce - a high dating back to September 5, 2011 - before paring gains to trade at around $768. Palladium hovered near $756 late Monday. Platinum also rallied, though it came short of setting a new milestone. The spot price of platinum was up 1.6 percent at $1,712.49 an ounce versus the previous session's level of near $1,686.
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