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Gold Posts Surprise Rise, Defying China Deal; Palladium Eyes $2,000

Published 12/13/2019, 03:15 PM
Updated 12/13/2019, 03:16 PM
© Reuters.

© Reuters.

Investing.com – Gold bulls seem determined to show their disbelief that the China deal touted by President Donald Trump will do magic. They sent prices higher Friday, as the yellow metal remained a hedge to the 17-month trade war.

Autocatalyst metal palladium, meanwhile, closed lower after overwriting gold’s all-time high on Thursday. But the spot price of palladium came within less than $20 of the $2,000 per ounce level targeted by fund managers before sliding on profit-taking.

Gold futures for February delivery on New York’s COMEX settled up $8.90, or 0.6%, at $1,481.20 per ounce after the Trump Administration announced a China trade deal with scant details.

Spot gold, which tracks live trades in bullion, rose $7.82, or 0.5%, to $1,477.15 by 3:00 PM ET (20:00 GMT).

Spot gold is up 15% on the year, while gold futures are showing a 13% gain.

“Gold bulls believe there are more unknowns than knowns with this trade deal and that’s why gold prices haven’t really fallen much in recent days,” said Adam Sarhan, chief executive at 50 Park Investments in Orlando, Fla.

spot price of palladium hit record highs for a 16th day in a row on continued worries about the power crisis in South Africa that shut down mines in the No.2 palladium producer. Spot palladium was down $16.43, or 0.9%, at $1,923.73. It earlier hit an all-time high of $1,981.50.

Palladium futures for March delivery on Comex settled down $22.60, or 1.2%, at $1,891.60, after setting record highs at $1,958.30.

Palladium futures are up 60% on the year, while spot palladium has gained 51%, easily making the metal, which serves as a purifying agent for gasoline emissions, the best-performing commodity of 2019.

Latest comments

i think its because of the usd weakness especially after Uk elections
Normally gold spot should be struggled on the official news of a Us China trade deal. I forecast a very bearish attitude on Monday...I think it can reach 1420 $.
you hope... lol
I don't hope...it will happen next week...BREXIT and Us China deal have a great impact on Gold...BREXIT will happen and trade war has just started finishing...
It's not a surprise. You news agencies put up fake news expecting the gold/silver price to collapse upon a US/China "deal." The only ones really shocked are these same media companies whose narrative didn't work out as planned.
Erhmm.. You don't think the bad US data yesterday and today played a role in that?
Cannot deny the impact from those, though the broader strokes today were all on this trade deal.
Palladium, of course, is in a different universe of its own.
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