Palladium jumped 2 percent on Tuesday to its highest price since February 2001, as traders expecting higher demand from the automotive industry piled into the metal on the first day of its new futures contract, while gold slipped slightly as the US dollar advanced. Palladium rose to a session high of $1,028.30, its highest since February 2001. At 3:56 pm ET (2056 GMT) it was at $1,025.15.
"The automotive industry and the global economy have been really strong," said Phillip Streible, senior commodities strategist at RJO Futures in Chicago. He said the rally also gained pace as traders took on new positions a day after the December COMEX palladium futures contract expired. Gold edged lower as the dollar strengthened after US Federal Reserve chair nominee Jerome Powell told the Senate Banking Committee at his confirmation hearing that the Fed was likely to raise interest rates next month.
Powell, who aims to succeed current chair Janet Yellen and her predecessor Ben Bernanke, said the Fed should "respond decisively" to any new economic crisis. Spot gold dipped 0.1 percent to $1,292.70 an ounce by 3:41 pm EST (2041 GMT), while US gold futures for December delivery settled up 50 cents, or 0.04 percent, at $1,294.90 per ounce.
So far in November, gold has stayed within its narrowest trading range of any month since late 2005. "We've seen active buying on dips, yet certainly the pressure of the idea of a pending rate hike - a good portion of that is more than factored into the market," said David Meger, director of metals trading at High Ridge Futures in Chicago. Silver was down 1 percent at $16.85 per ounce, while platinum was 0.1 percent higher at $948.20.
Comments
Comments are closed.