Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Under-supplied palladium races to record, gold awaits Fed

04/27/2021 | 01:24pm EDT
A vendor arranges gold chains displayed at VJ Gold and Diamond jewellery shop in Kuala Lumpur

(Reuters) - Palladium prices hit a record on Tuesday, spurred by persistent supply worries, while gold held a narrow range as investors awaited policy signals from the U.S. Federal Reserve's meeting this week.

Palladium hit a record of $2,962.50 per ounce earlier and was up 0.8% at $2,948.69 per ounce by 1:02 p.m. EDT (1702 GMT).

"What we're seeing here in palladium is a market that's in a deeper deficit than many had expected earlier in the year... That's going to continue to fuel higher prices in the near term," said TD Securities commodity strategist Daniel Ghali.

At this rate, palladium can trade north of $3,000 by next month, he added.

Prices of palladium, used in catalytic converters to clean car exhaust fumes, have risen 20% so far this year.

A Reuters poll returned a higher forecast for palladium after flooding at the biggest supplier, Russia's Nornickel, worsened a shortage.

Spot gold inched 0.1% lower to $1,778.32 per ounce with investors focusing on the Fed's meeting.

U.S. gold futures were down 0.1% at $1,778.

"Gold investors will be watching for any indications from the Fed as to whether they're seeing any longer term sustainable inflation," said Jeffrey Sica, founder of Circle Squared Alternative Investments.

The acknowledgement of inflation and the anticipation that there will be more could help gold break above $1,800, Sica added.

While gold is considered a hedge against inflation that could follow widespread stimulus, elevated Treasury yields have dulled the non-yielding bullion's appeal this year.

No major policy changes are expected from the Fed meeting ending on Wednesday, but investors will pay close attention to Chairman Jerome Powell's economic outlook.

Analysts have slashed their gold price forecasts, with many believing a return to last year's record highs is unlikely as the economy recovers.

Silver rose 0.5% to $26.33 per ounce. Platinum was little changed at $1,251.26.

(Reporting by Eileen Soreng and Nallur Sethuraman in Bengaluru; Editing by Mark Heinrich and Barbara Lewis)

By Eileen Soreng


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
GOLD 0.57% 1774.618 Delayed Quote.-7.58%
MINING AND METALLURGICAL COMPANY NORILSK NICKEL -0.55% 30.82 Delayed Quote.-0.67%
PALLADIUM 0.29% 1907 Delayed Quote.-17.87%
SILVER 0.97% 22.5046 Delayed Quote.-15.06%
Latest news "Economy & Forex"
05:57pCanada's Aurora Cannabis to shut down a facility in Edmonton
RE
05:43pStocks fail to rebound after Monday's sell-off
RE
05:34pUtilities Shares Fall -- Utilities Roundup
DJ
05:34pThe WSJ Dollar Index Falls 0.05% to 87.79 -- Data Talk
DJ
05:34pEuro Lost 0.01% to $1.1728 -- Data Talk
DJ
05:34pSterling Gains 0.01% to $1.3659 -- Data Talk
DJ
05:33pEntergy estimates repair costs of up to $2.6 bln from Hurricane Ida
RE
05:33pDollar Lost 0.17% to 109.22 Yen -- Data Talk
DJ
05:33pDogecoin Lost 3.68% to $0.202 at 5 p.m. ET -- Data Talk
DJ
05:33pDraftKings courts UK's Entain with $22.4 billion offer as U.S. sports betting spurs deals
RE
Latest news "Economy & Forex"